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Why Doesn't the Marginal Worker Hired Earn Economic Rent in a Competitive

Question 93

Multiple Choice

Why doesn't the marginal worker hired earn economic rent in a competitive labor market?


A) His reservation wage is less than the wage.
B) His reservation wage is greater than the wage.
C) His reservation wage is equal to the wage.
D) He is paid a wage that is lower than the others.

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