. Mary Jo Smith is willing to work for $3,200 per month. She asks the HR manager
ID: 1224988 • Letter: #
Question
. Mary Jo Smith is willing to work for $3,200 per month. She asks the HR manager at Plain Truth Advertising for $4,000 per month. He was willing to pay only $3,700 per month, so he rejects her application and begins to search for a new employee again. This is an example of: A. adverse selection. B. value maximization. C. bargaining failure. D. agency problem.
Joan Petty, a human resource manager, offers Billy Self $2,750 per month as an inventory manager. She is willing to offer $750 more per month, but Billy does not have that information and walks away from the job offer. This is an example of a: A. market at work. B. bargaining success. C. bargaining failure. D. market in transition.
Explanation / Answer
1) Mary Jo Smith is willing to work for $3,200 per month. She asks the HR manager at Plain Truth Advertising for $4,000 per month. He was willing to pay only $3,700 per month, so he rejects her application and begins to search for a new employee again. This is an example of :-
Answer:- Bargaining failure [Option C ]
2) Joan Petty, a human resource manager, offers Billy Self $2,750 per month as an inventory manager. She is willing to offer $750 more per month, but Billy does not have that information and walks away from the job offer. This is an example of :-
Answer:- Bargaining failure [Option C ]
Conclusion:- Question (1) and Question (2):- The answers to both question is Bargaining Failure (Option C).
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