Factory workers who work the day shift earn less per hour than similarly-skilled factory workers who work the night shift. The difference in pay is attributed to
A)the marginal product of labor.
B)the marginal product of capital.
C)diminishing marginal returns.
D)a compensating differential.

Question

Quizplus · Accepted Answer

The difference in pay between day shift and night shift workers is a compensating differential. This is because night shift work comes with additional costs and inconveniences, such as an increased risk of health problems and disruption to normal sleep patterns. The higher pay for night shift workers compensates them for these additional costs and inconveniences.

Factory Workers Who Work the Day Shift Earn Less Per