PRIN OF MICROECONOMICS
PRIN OF MICROECONOMICS
2nd Edition
ISBN: 9780393914085
Author: coppock
Publisher: Norton, W. W. & Company, Inc.
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Chapter 15, Problem 1QR
To determine

Explain why garbage collectors do sometimes make more than furniture movers.

Expert Solution & Answer
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Explanation of Solution

Due to the nature of garbage, it is more unpleasant to lift garbage into a truck than it is to lift furniture into the truck. Thus, in order to attract people to work as garbage collectors, a positive compensating differential has to be offered. Therefore, this positive compensating differential increases the wages for garbage collectors more than furniture movers.

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