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 ill the area pay, even though he could pay less and still recruit all the workers lie wants. He believes that higher wages make his workers more loyal and hard-working. This is an example of a compensating differential human capital signaling efficiency wages Measuring how much discrimination affects labor market outcomes is difficult because data oil 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 nm Which of the following equations is the rule that a monopolist uses to decide on quantity? MR > MC MR MC P > AR

Explanation / Answer

Q 26
a)
It is a motivational wage
b)
it is paid to the knowldge of capital
c)
One party convey information to other party. it is not related to wage
D)
The firms pay higher even though he could pay less and recruit all the workers he wants. he belives that higher wages make his worker more loyal and had working

so the answer is D.

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