Suppose a restaurant moves to another city and its manager asks the restaurant's two cooks to move there as well.Cook A is single and has no children to support.Cook B has a family with five children in grades K-8.Which of the following is the most likely outcome?
A) Cook A is more likely to move because of a lower labor adjustment cost.
B) Cook B is more likely to move because of a lower labor adjustment cost.
C) Cook A is more likely to move because of a higher labor adjustment cost.
D) Cook B is more likely to move because of a higher labor adjustment cost.

Question

Quizplus · Accepted Answer

Cook A has fewer personal ties and responsibilities, making it easier for them to move to a new location. Cook B has a larger family and therefore higher labor adjustment costs, including finding new schools and housing for their children. Therefore, Cook A is more likely to move due to a lower labor adjustment cost.

Suppose a Restaurant Moves to Another City and Its Manager