People who receive relatively high pay also tend to work in a relatively desirable work environment.This is probably because:
A)employers have imperfect information
B)highly paid and poorly paid workers are in noncompeting groups
C)firms with desirable working conditions are operating off their normal isoprofit curves
D)the differential required to compensate for high skill more than offsets the differential required for poor working conditions

Question

Quizplus · Accepted Answer

Highly skilled workers generally require a higher salary to compensate for their abilities, and firms are willing to pay that differential. This differential may even outweigh the differential required for poor working conditions. Therefore, highly paid workers are more likely to work in a desirable work environment.

People Who Receive Relatively High Pay Also Tend to Work