If a worker incurs the entire cost of general training,and if mobility costs are low,then we would expect that the employee's wage will be
A) equal to his or her marginal revenue product of labor.
B) greater than his or her marginal revenue product of labor, due to the training received.
C) less than his or her marginal revenue product of labor, to pay for the cost of the training received.
D) either greater or less than his or her marginal revenue product of labor.

Question

Quizplus · Accepted Answer

When a worker incurs the entire cost of general training and mobility costs are low, the worker's wage will adjust to equal their marginal revenue product of labor. This is because the worker has already paid for the training, and the employer does not need to compensate for this cost. Additionally, low mobility costs mean the worker can easily move to another job if they are not being paid their worth, ensuring wages align with the marginal revenue product of labor.

If a Worker Incurs the Entire Cost of General Training,and