Multiple Choice
In a competitive labor market,Firm X pays a higher wage than other firms.The only reason it pays a higher wage is to attract a larger labor pool and get the better workers.Which of the following would we expect to observe about Firm X (as compared to the other firms in the industry) ?
A) Firm X makes about the same rate of profit (as other firms) .
B) Firm X will have a higher quit rate.
C) Firm X will set up its retirement package so workers retire early.
D) Firm X's wage will continually rise with seniority.
Correct Answer:

Verified
Correct Answer:
Verified
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