The acceptance wage is the wage that:
A)equates the expected marginal benefit and expected marginal cost of continued job search
B)minimizes the expected cost of continued job search
C)maximizes the expected benefit of continued job search
D)equates the expected average benefit and expected average cost of continued job search

Question

Quizplus · Accepted Answer

The acceptance wage is the wage at which the expected marginal benefit of continuing to search for a higher wage equals the expected marginal cost of continuing to search. This is because a worker will accept a job offer when the wage offered is greater than or equal to their acceptance wage, and will continue searching for a higher wage when the wage offered is less than their acceptance wage. Therefore, option A is the correct answer.

The Acceptance Wage Is the Wage That