What will be the employers per-employee profit

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Reference no: EM131102736

An employer faces two types of employees. Regular workers are 70% of the population and generate $100,000 in productivity. Exceptional workers are 30% of the population, and generate $120,000 in productivity. Employees know their types, and reject salaries below their productivity. If the employer offers a salary equal to the average productivity in the population, what will be the employer’s per-employee profit? Select one:

a. -$10,000 b. $0 Incorrect c. -$6,000 d. $4,000

Reference no: EM131102736

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