Efficiency wage theory says that if a company pays higher wages,it can generally hire better people who will in turn be more productive.

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According to efficiency wage theory, paying higher wages can attract more talented and motivated workers, leading to higher productivity and lower turnover rates. This is because well-paid workers are more likely to feel valued and committed to their job, and therefore more willing to invest their effort and time into their work.

Efficiency Wage Theory Says That If a Company Pays Higher