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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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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