A profit-maximizing firm that uses an efficiency wage and monitors will increase the wage it pays its workers until
A) the worker requires no monitoring.
B) the worker receives the market wage and requires full-time monitoring.
C) the cost of monitoring the worker equals the efficiency wage.
D) the change in the workers' productivity from being monitored times the per time unit cost of monitoring equals one.
D
You might also like to view...
In the above figure, if D2 is the original demand curve and the population falls, which price and quantity might result?
A) point a, with price P2 and quantity Q2 B) point b, with price P1 and quantity Q1 C) point c, with price P3 and quantity Q3 D) point d, with price P1 and quantity Q3
Revenue is equal to
A) price times quantity. B) price times quantity minus total cost. C) price times quantity minus average cost. D) price times quantity minus marginal cost. E) expenditure on production of output.