Exhibit 27-7 Wage Rate 0 0₁ Quantity of Labor Market A Wage Rate 8₂ Ob and c 34 0₂ Quantity of Labor Market B Refer to Exhibit 27-7. The exhibit shows two markets in which labor of identical skills is employed. Assume that both markets are in equilibrium with Q₁ and Q₂ quantities of labor employed at the respective prices of $4 and $6 per unit. If this equilibrium persists in the long run, an economist would suspect that O nonpecuniary benefits are higher in market A. O nonpecuniary benefits are higher in market B. Othere is discrimination in market A. Othere is no cost of moving across markets.

Exhibit 27-7 Wage Rate 0 0₁ Quantity of Labor Market A Wage Rate 8₂ Ob and c 34 0₂ Quantity of Labor Market B Refer to Exhibit 27-7. The exhibit shows two markets in which labor of identical skills is employed. Assume that both markets are in equilibrium with Q₁ and Q₂ quantities of labor employed at the respective prices of $4 and $6 per unit. If this equilibrium persists in the long run, an economist would suspect that O nonpecuniary benefits are higher in market A. O nonpecuniary benefits are higher in market B. Othere is discrimination in market A. Othere is no cost of moving across markets.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter12: Labor Markets And Labor Unions

Section: Chapter Questions

Problem 1.1P

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