Multiple Choice
In the DMP model
A) the firm threatens the worker with separation and takes all the surplus from the match.
B) the firm's surplus from a match is equal to a constant fraction of total surplus.
C) the firm earns zero profits in a match.
D) when a match occurs, the firm is indifferent between continuing with the match and letting the worker go.
Correct Answer:
Verified
Correct Answer:
Verified
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