If a firm offers specific training to its workers,when the training is over,
A) workers will most likely be paid a wage that is equal to their marginal product.
B) workers will most likely be paid a wage that is greater than their marginal product, to compensate for the training.
C) workers will most likely be paid a wage that is less than their marginal product.
D) workers will most likely be paid a wage that is less than their wage before training.

Question

Quizplus · Accepted Answer

Specific training increases the productivity of workers, making their marginal product higher. However, since the skills acquired are specific to the firm, the workers' outside options do not improve as much, allowing the firm to pay them less than their marginal product while still retaining them.

If a Firm Offers Specific Training to Its Workers,when the Training