Assume that a job package is characterized by the pair (w,z)where w is the wage,and z is a single undesirable non-wage job attribute.All else equal,a firm's profit is _______ in
W and _______ in z.

Question

Quizplus · Accepted Answer

A firm's profit is decreasing in w because higher wages increase costs. Profit is increasing in z because undesirable attributes may reduce costs or increase productivity.

Assume That a Job Package Is Characterized by the Pair