Suppose all workers are identical but working for Ajax is more pleasant than working for Acme. In all other nonwage aspects, the two firms offer the same job characteristics. We would expect
A) wage rates at Ajax to be higher than at Acme.
B) wage rates at Ajax to be lower than at Acme.
C) wage rates at Ajax and Acme to be the same.
D) workers at Ajax would have to be monitored more closely than those at Acme.

Question

Quizplus · Accepted Answer

Since working at Ajax is more pleasant, workers may accept lower wages compared to Acme, where the job is less pleasant.

Suppose All Workers Are Identical but Working for Ajax Is