Pay rates within a firm seem to show less variation than marginal productivity rate differences. This is because
A)firms cannot measure marginal productivity accurately.
B)firms compensate their high producers with non-monetary perks.
C)social norms do not allow employers to pay high productivity wages.
D)as much as possible firms try to pay employees the same rate for fairness reasons.

Question

Quizplus · Accepted Answer

Firms often use non-monetary perks to reward high producers, which can lead to less variation in pay rates compared to marginal productivity differences.

Pay Rates Within a Firm Seem to Show Less Variation