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If a Prospective Employee Is Not Offered His/her Reservation Utility

Question 2

Multiple Choice

If a prospective employee is not offered his/her reservation utility or reservation wage,then he/she will:


A) tend to look for another job or withdraw from the labor market.
B) seek a larger fringe benefit package.
C) use the job as the basis for a career,assuming that wages will increase beyond the marginal revenue product over time.
D) accept the job because a wage below the reservation utility is very attractive.

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