Oligopolists need to consider:

When employers sort employment applications into high-ability and low-ability people based on whether or not the applicant has a college degree (irrespective of major), they are providing evidence in support of the

a. human-capital theory of education. b. signaling theory of education. c. principle that education reduces marginal productivity. d. principle that most business owners are more interested in discriminating against a particular group than in maximizing profits.

The theory of efficiency wages provides a possible explanation as to why

a. workers form unions. b. firms should try to reduce surpluses of labor. c. firms may be inclined to keep their workers' wages above the equilibrium level. d. firms may be inclined to keep their workers' wages below the equilibrium level.