Bundle: Principles of Microeconomics, 7th + LMS Integrated Aplia, 1 term Printed Access Card
7th Edition
ISBN: 9781305242463
Author: N. Gregory Mankiw
Publisher: Cengage Learning
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Question
Chapter 19, Problem 3CQQ
To determine
Example of efficiency wages.
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Cindy is a baker and runs a large cupcake shop. She has already hired 11 employees and is thinking of hiring a 12th. Cindy estimates that a 12th worker would cost her $100 per day in wages and benefits while increasing her total revenue from $2,600 per day to $2,750 per day. Should Cindy hire a 12th worker? a. Yes. b. No. c. You need more information to figure this out.
Cindy is a baker and runs a large cupcake
shop. She has already hired 11 employees and
is thinking of hiring a 12th. Cindy estimates that
a 12th worker would cost her $100 per day in
wages and benefits while increasing her total
revenue from $2,600 per day to $2,750 per
day. Should Cindy hire a 12th worker?
1. Yes.
2. No.
3. You need more information to figure this
out.
There are many reasons why women earn less than men. One is attributed to the education and work environment women seek. Women often look for jobs that have normal hours, good working conditions, and safety.
True or
False?
Chapter 19 Solutions
Bundle: Principles of Microeconomics, 7th + LMS Integrated Aplia, 1 term Printed Access Card
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- A real estate firm faces two kinds of employees, those able to sell 10 houses per year, and those able to sell 5 units per year. High-productivity employees are willing to work for $100,000/year, low-productivity employees are willing to work for $50,000/year. Which compensation scheme would be able to weed out the low-productivity workers best? a. offer a salary of 100K b. Offer a salary of $75K with unit commission c. officer a sale commission of $10K per unit d. Office a sales commission of $20K a unity starting with unity 5arrow_forwardMarshall and Lily work at a local department store.Marshall, who greets customers as they arrive, ispaid less than Lily, who cleans the bathrooms. Thisis an example ofa. a compensating differential.b. human capital.c. signaling.d. efficiency wages.arrow_forwardThink of a job that either you or a friend/relative held that paid a wage that you thought was either unfair or inequitable compared to the wages or salaries of other positions within the business or within the wider business community. Answer the following questions in relation to that example. On what basis do you think the wage was set? I.e. What factors influenced how much the organization valued the role? Why did you think it was unfair? If there was an opportunity to be covered by a Union contract/agreement, do you think there would have been an increase/decrease in the wage? If you were the employer, what would cause you to increase the wage for that role? and finally, 5. Do you think that the wages/salaries of the main "jobs" in our society are allocated fairly? Provide an example of a role that you think is highly undervalued and explain why. For example, should CEOs and celebrities earn millions of dollars each year compared to child care workers or stay at home parents who…arrow_forward
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