Fred runs a small manufacturing company. He pays his employees about twice what

Question

Fred runs a small manufacturing company. He pays his employees about twice what other firms in the area pay, even though he could pay less and still recruit all the workers he wants. He believes that higher wages make his workers more loyal and hard-working. Tills is an example of a compensating differential human capital signaling efficiency wages Measuring how much discrimination affects labor market outcomes is difficult because data on wages are not readily available firms misreport their wages to hide discriminatory practices workers differ in their attributes and the types of jobs they have the same minimum wage laws apply to workers in all groups Taco stands in Dallas are a perfectly competitive industry in long run equilibrium. One day the city starts imposing a $100 dollar per month tax on each stand. How does this affect the number of tacos consumed in the short run and the long run? down in the short run: no change in the long run up in the short run; no change in the long run no change in the short run: down in the long run no change in the short run: up in the long rum Which of the following equations is the rule that a monopolist uses to decide on quantity? MR > MC MR MC P > AR

Explanation / Answer

26
Ans is D efficiency wages
According to effciency wages higher wages make workers loyal and motivate them to work hard.

Option A

it is offered to worker accept undesirable job

Option B

it is stock of knowldge there is no relation with the above statement

Option C

it means one party convey the idea to anather party so it is also not related to the above statement
27
measuring how much discrimination affects labir market outcomes is difficult because
Ans is C
workers differ in their attributes and the types of jobs they have.
28
Ans is A
down in the short run;no change in the long run

Monopolist uses the rule MC=MR
Ans is D MR=MC
29
Ans is C. P>MC

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