According to efficiency wage theory, a firm that raises wages by one percent will actually lower the labor cost per unit of output if the wage increase
A) raises output per worker by more than one percent.
B) raises output per worker by less than one percent.
C) does not change output per worker.
D) lowers output per worker by less than one percent.
A
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What would happen in the market for knee replacement surgery if insurance companies started to cover a smaller portion of the cost of the surgery, and fewer doctors decide to enter the field of joint replacement surgery?
A) Supply will decrease, but this will not shift the demand curve. B) Demand will decrease and supply will increase. C) Demand and supply will both decrease. D) Demand will decrease, but this will not shift the supply curve.
A major capital purchase is any purchase that you can’t afford to pay for in full with monthly cash flow.
Indicate whether the statement is true or false