When a worker's MRP is difficult to measure,for example,a college professor or corporate CEO,wages can be determined by the:

Question

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When MRP cannot be easily measured, the worker's wages can be determined by the wages he or she would receive in his or her best alternative job. This is because the worker's next-best option is the opportunity cost of working in the current profession. Thus, the wage offered should be sufficient to attract workers from their next-best option. Factors such as the supply of labor and minimum wage may play a role, but they do not directly determine the wage in this scenario. The average wage of government workers would also not be relevant as it does not reflect the specific skills and experience of workers in the private sector.

When a Worker's MRP Is Difficult to Measure,for Example,a College