Question

If a prospective employee is not offered his/her reservation utility or reservation wage, then he/she will: Question 6 options: tend to look for another job or withdraw from the labor market. accept the job because a wage below the reservation utility is very attractive. seek a larger fringe benefit package. use the job as the basis for a career, assuming that wages will increase beyond the marginal revenue product over time.

Answer 1

If a prospective employee is not offered his/her reservation utility or reservation wage, then he/she will use the job as the basis for a career.

Step-by-step explanation:

Reservation Utility or wage for an employee is the minimum level of utility guaranteed by his/her contract of employment before endorsement.

If a prospective employee is not offered his/her reservation utility or reservation wage, it could be because, He/she is an intern.

A skilled skilled professional with years of experience would scarcely experience this issue.

Therefore if an entry level prospective employee or intern is faced with this scenario, he/she could spin it to their advantage by using the job as the basis for a career.