If employers cannot distinguish between good and bad workers, then the employers must offer all workers a wage that reflects the __________ productivity of all workers in the population.
A) total
B) average
C) marginal

Question

Quizplus · Accepted Answer

If employers cannot distinguish between good and bad workers, they cannot pay according to individual productivity, hence they must offer an average wage which reflects the productivity of all workers in the population.

If Employers Cannot Distinguish Between Good and Bad Workers, Then