Answer to Question #60373 in Microeconomics for Bob
Firefighters are highly skilled workers who are typically employed by city governments. If a city reduces the wage rate paid to firefighters to be less than the equilibrium wage rate, what happens to the economic rents earned by the firefighters?
c. remain unchanged
d. public employees like firefighters cannot earn economic rents
b. decrease As economic rent is the positive difference between the actual payment made for a labor to highly skilled workers and the payment level expected by them, due to its exclusivity or scarcity, it decreases when a city reduces the wage rate paid to firefighters to be less than the equilibrium wage rate.
From a young age, our brains develop to the world around us, the environment we live in, and the people…
APPROVED BY CLIENTS
This was the best experience for my home schooled son. Chemistry was getting best of us and this site allowed us to get the right answers along with the correct way to work the problems. Thank you for economical and quick responses