Author Question: Suppose new electronic devices make it easier to monitor the effort levels of workers. If some ... (Read 97 times)

go.lag · **on:** Jul 1, 2018

Suppose new electronic devices make it easier to monitor the effort levels of workers. If some shirking is still possible in the efficiency wage model, what happens to the level of employment?

A) Increases, but some unemployment remains
B) Increases, and the labor market reaches full employment
C) Decreases
D) Does not change

Question 2

Refer to Scenario 10.8. Suppose that the regulatory agency sets your price where average revenue equals average cost. How much profit will Adriana make?

A) She will lose money and will go out of business.
B) She will break even.
C) She will make a profit.
D) none of the above