Because a perfectly competitive employers MRC curve is _________, it will hire _
ID: 1211888 • Letter: B
Question
Because a perfectly competitive employers MRC curve is _________, it will hire ________ workers than would a monopsony empployer with the same MRP curve. The market equillibrium wage is currently $12 per hour among hairdressers. At that wage, 17,323 hairdressers are currently employed in that state. The state legislature then sets the minimum wage at $11.50 per hour for hairdressers. If there is no change to either the demand or supply for hairdressers when the mininum wage is imposed, the number of hairdressers employed in the state will be On average, 50 yearold workers are paid several times more than workers in their teens and twenties.
Which of the following options is most likely explanation for that huge difference in average earnings?
a. Older workers have more human capital and higher MRPs.
b. Employers engage in widespread discrimination against younger workers
c. Young people lack information about the existence of high paying jobs occupied by older workers
d. older workers receive compensating differences because they do jobs that are more risky than the jobs done by younger workers.
Explanation / Answer
raised, more employees.
option D is correct