Question

Suppose that cooks that work the late-night hours at a restaurant get paid slightly more than cooks who work during the day shift. This is an example of Select one: a. an oligopsony. b. a bilateral monopoly. c. compensating wage differentials. d. a monopsony. e. economic rents. Airline companies who charge business travelers a higher price than vacationers might be using price-discrimination to capture additional revenues. Select one: True False

Answer 1

1. Different wages paid to workers to compensate for the difference in work due to risk, education, location, dirty, and undesirable or unpleasant conditions is called compensating wage differentials.

c. compensating wage differentials.

2. Airline companies discriminate price between business travelers and vacation travelers in order to maximize additional revenue.

a. True