If a firm is inundated by qualified applicants when it advertises a job opening and the firm's quit rate is unusually low,then the firm is probably paying:
A)below the market wage.
B)the market wage.
C)above the market wage.
D)each worker its marginal revenue product.

Question

Quizplus · Accepted Answer

When a firm is inundated by qualified applicants and has a low quit rate, it is an indication that the firm is paying above the market wage. This is because workers are less likely to leave a job if they are satisfied with their pay and benefits, and the large pool of qualified applicants suggests that the wage being paid by the firm is attractive to potential employees, which implies that it is higher than the market wage.

If a Firm Is Inundated by Qualified Applicants When It