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.
c
Economics
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A movement upward along an upward-sloping Engel curve corresponds to
A) upward-sloping indifference curves. B) crossing indifference curves. C) a rotation in the budget constraint. D) a parallel shift in the budget constraint.
Economics
Returns to monopsony power occur because the wage rate < MRP for the last worker hired
Indicate whether the statement is true or false
Economics