A reservation wage is the ?
Correct answer: C. minimum wage the worker is willing to accept
- A. Maximum wage the firm is willing to pay
- B. tip necessary to get a waiter to reserve a table
- C. minimum wage the worker is willing to accept
- D. competitive equilibrium wage.
Explanation
A reservation wage is the lowest wage at which a worker is willing to accept a job. A wage below this threshold will not induce that worker to work.
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