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Consider the dispersed-employment case, in which the CBD remains the only job center but other businesses are scattered throughout the city without any significant spatial concentration, Suppose firm A is located at the CBD and firm B is located between the CBD and a worker's residence. All other things being equal, which of the following statement is true? O a. Firm A pays higher salary to the worker O b. Firm B pays higher salary to the worker Oc. Firm A and Firm B pay the same level of salary to the worker d. The comparison between the levels of salary paid by both firms is inconclusive

Consider the dispersed-employment case, in which the CBD remains the only job center but other businesses are scattered throughout the city without any significant spatial concentration, Suppose firm A is located at the CBD and firm B is located between the CBD and a worker's residence. All other things being equal, which of the following statement is true? O a. Firm A pays higher salary to the worker O b. Firm B pays higher salary to the worker Oc. Firm A and Firm B pay the same level of salary to the worker d. The comparison between the levels of salary paid by both firms is inconclusive

Understanding Business
Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Consider the dispersed-employment case, in which the CBD remains the only job center but other businesses are scattered throughout the city without any significant spatial concentration. Suppose firm A is located at the CBD and firm B is located between the CBD and a worker's residence. All other things being equal, which of the following statement is true? a. Firm A pays higher salary to the worker O b. Firm B pays higher salary to the worker Oc. Firm A and Firm B pay the same level of salary to the worker d. The comparison between the levels of salary paid by both firms is inconclusive
Transcribed Image Text:Consider the dispersed-employment case, in which the CBD remains the only job center but other businesses are scattered throughout the city without any significant spatial concentration. Suppose firm A is located at the CBD and firm B is located between the CBD and a worker's residence. All other things being equal, which of the following statement is true? a. Firm A pays higher salary to the worker O b. Firm B pays higher salary to the worker Oc. Firm A and Firm B pay the same level of salary to the worker d. The comparison between the levels of salary paid by both firms is inconclusive
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