Answer to Question #60373 in Microeconomics for Bob
c. remain unchanged
d. public employees like firefighters cannot earn economic rents
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.
Need a fast expert's response?Submit order
and get a quick answer at the best price
for any assignment or question with DETAILED EXPLANATIONS!