5. When an employer's information indicates that two individuals have exactly the same productivity, there will be competitive pressure to a) pay lower wages to the person who belongs to the group with the higher average productivity. b) pay higher wages to the person who belongs to the group with the higher average productivity. c) pay both workers the same wage rate even if one worker belongs to a group with a higher average productivity. d) not hire the person who belongs to the lower average production group.

5. When an employer's information indicates that two individuals have exactly the same productivity, there will be competitive pressure to a) pay lower wages to the person who belongs to the group with the higher average productivity. b) pay higher wages to the person who belongs to the group with the higher average productivity. c) pay both workers the same wage rate even if one worker belongs to a group with a higher average productivity. d) not hire the person who belongs to the lower average production group.

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter26: Factor Markets: With Emphasis On The Labor Market

Section: Chapter Questions

Problem 14QP

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Question

5. When an employer's information indicates that two individuals have exactly the same productivity,
there will be competitive pressure to
a) pay lower wages to the person who belongs to the group with the higher average
productivity.
b) pay higher wages to the person who belongs to the group with the higher average
productivity.
c) pay both workers the same wage rate even if one worker belongs to a group with a higher
average productivity.
d) not hire the person who belongs to the lower average production group.

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