How does the theory of efficiency wages explain above-equilibrium wages?
a. Employers are forced by competition to pay higher wages in efficient markets.
b. Employers give their workers a higher wage in the hope that it will lead to increased productivity.
c. Workers get higher wages when they prove they are increasing their productivity.
d. Workers demand higher wages to compensate for poor fringe benefits.
b
Economics
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Refer to Figure 11-2. The curve labeled "E" is
A) the output supply curve. B) the average product curve. C) the marginal product curve. D) the total product curve.
Economics
When firms compete with each other rather than cooperate:
A. consumers will end up better off. B. the firms will end up better off. C. prices will be higher. D. output will be lower.
Economics