Throughout the course, we will spend considerable time thinking about how you should pay workers, and when you should pay them. The purpose of this question is for you to think through how much you should pay them - market wages, above market wages, or below market wages?As an example, Merck is a company that pays well relative to the market, every year benchmarking their pay to the 75th percentile of industry wages. The purpose of this question is to use the tools of the course to determine circumstances under which firms benefit from paying more than market wages. This is not for ethical reasons, but rather as it increases their profits. The backdrop to this is that the last two years have seen a large increase in strikes by workers claiming to deserve higher pay (https://www.epi.org/publication/major-strike-activity-in- 2023/). The specific context that I would like you to evaluate is a short strike by journalists at the New Yorker Magazine in 2020. Details are here