Suppose all workers are identical but working for Ajax is more pleasant than working for Acme.In all other nonwage respects the two firms offer the same job characteristics.In equilibrium:
A)the wage at Ajax will be higher than at Acme
B)the wage at Ajax will be lower than at Acme
C)workers will have lower net utility at Acme
D)employment will be higher at Ajax if demand is the same in both markets

Question

Quizplus · Accepted Answer

In equilibrium, the more pleasant working conditions at Ajax mean that workers are willing to accept a lower wage compared to Acme, where conditions are less pleasant.

Suppose All Workers Are Identical but Working for Ajax Is