Firefighters are highly skilled workers who are typically employed by city governments. If a city reduces the wage rate paid to firefighters to be less than the equilibrium wage rate, what happens to the economic rents earned by the firefighters?
A) Increase
B) Decrease
C) Remain unchanged
D) Public employees like firefighters cannot earn economic rents
ANSWER
B
Place an order in 3 easy steps. Takes less than 5 mins.