According to the theory of efficiency wages, firms operate more efficiently if wages are above the equilibrium level.

Name: According to the theory of efficiency wages, firms operate more efficiently if wages are above the equilibrium level.
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The theory of efficiency wages suggests that by paying higher wages, firms can increase worker productivity, reduce turnover, and attract more skilled employees, thereby operating more efficiently than if they paid wages at the equilibrium level.

According to the Theory of Efficiency Wages, Firms Operate More