Suppose that John is a high-school drop outwith a market wage of $8.a. Give two reasons why John' MRPL might increaseif the firm pays an efficiency wage?b. The relationship between John's wage and MRPLis given in the table below. What is the efficientwage for John?Wage ($/hour)MRPL ($/hour)$8$8.00$9$9.50$10$11.00$11$12.25$12$13.00$13$13.50$14$14.00

The labor markets are considered to be one of the most important markets. In the labor markets, the…

Suppose that John is a high-school drop out with a market wage of $8. a. Give two reasons why John' MRPL might increase if the firm pays an efficiency wage? o. The relationship between John's wage and MRPL is given in the table below. What is the efficient wage for John? Wage ($/hour) MRPL ($/hour) $8 $8.00 $9 $9.50 $10 $11.00 $11 $12.25 $12 $13.00 $13 $13.50 $14 $14.00

Suppose that John is a high-school drop out with a market wage of $8. a. Give two reasons why John' MRPL might increase if the firm pays an efficiency wage? o. The relationship between John's wage and MRPL is given in the table below. What is the efficient wage for John? Wage ($/hour) MRPL ($/hour) $8 $8.00 $9 $9.50 $10 $11.00 $11 $12.25 $12 $13.00 $13 $13.50 $14 $14.00

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Theory Of Consumer Choice

Section: Chapter Questions

Problem 9PA

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