If an employer cannot distinguish the ability of workers, a separating

If an employer cannot distinguish the ability of workers, a separating equilibrium will result.

Indicate whether the statement is true or false

 

ANSWER

False. When an employer cannot distinguish the abilities of the workers, the employer will pay all workers an average wage. This is a pooling equilibrium.

 

Expert paper writers are just a few clicks away

Place an order in 3 easy steps. Takes less than 5 mins.

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:
$0.00