Multiple Choice
In the two-sided search model, firms continue posting vacancies until the probability of matching with a worker is equal to
A) the ratio of the cost of posting a vacancy to the profits from a match.
B) the marginal product of labour.
C) the real wage rate.
D) the ratio of the profits from a match to the number of matches.
E) the unemployment rate.
Correct Answer:
Verified
Correct Answer:
Verified
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