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BrendanOO7 BrendanOO7
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Firm A's isoprofit curves are flatter than those of firm B. Therefore,
A) firm A will be willing to pay a larger compensating differential than firm B.
B) firm B will be willing to pay a larger compensating differential than firm A.
C) both firms will pay the same compensating differential, but firm B will have higher profits than firm A.
D) risk is more costly to reduce in firm A than in firm B.
Textbook 
Modern Labor Economics: Theory and Public Policy

Modern Labor Economics: Theory and Public Policy


Edition: 12th
Authors:
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ShadiasShadias
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