Pat works for a landscape contractor,generating gross revenues of $50 per hour.Non-labor variable costs total $10 per hour.Pat loves to garden,and would be willing to work for $15 per hour.Assume that the labor market is perfectly competitive.
The difference between the net revenue generated by Pat and Pat's reservation price will eventually
A) be captured by Pat in the form of rent.
B) be captured by Pat's employer in the form of profit.
C) cause wages in the landscape market to fall to $15.
D) be split evenly between Pat and the landscape company.
Correct Answer:
Verified
Q1: Sam owns a candy factory and
Q2: In competitive labor markets, _ demand labor
Q2: Sam owns a candy factory and
Q3: The marginal product of the 14th worker
Q5: Pat works for a landscape contractor,generating gross
Q7: The relationship between labor usage and
Q8: Gino's Pizza shop hires cooks in
Q9: The relationship between labor usage and
Q10: What is the extra output received from
Q11: Gino's Pizza shop hires cooks in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents