If Sam decides to work, his
A) reservation wage is greater than his wage rate.
B) value of marginal product equals his wage rate.
C) reservation wage is less than his wage rate.
D) value of marginal product is greater than his wage rate.

Question

Quizplus · Accepted Answer

Sam decides to work when his reservation wage (the lowest wage at which he is willing to work) is less than or equal to his actual wage rate, indicating that the job offers him sufficient compensation to make working preferable to not working.

If Sam Decides to Work, His