In a Deferred-Payment Arrangement

Multiple Choice

In a deferred-payment arrangement,

A) wages are equal to marginal revenue product at both the junior and senior levels.
B) wages are less than marginal revenue product at both the junior and senior levels.
C) wages are higher than marginal revenue product at both the junior and senior levels.
D) wages are less than marginal revenue product at the junior level but higher than marginal revenue product at the senior level.
E) wages are higher than marginal revenue product at the junior level but less than marginal revenue product at the senior level.