Which of the following CANNOT explain why large firms tend to pay higher salaries?
A) Large firms find monitoring more expensive.
B) Large firms allow less independence and have more rigid discipline.
C) Large firms find job vacancies less costly.
D) Efficiency wages work better in large firms.

Question

Quizplus · Accepted Answer

Job vacancies are likely to be equally costly for large and small firms, so this cannot explain why large firms tend to pay higher salaries. A, B, and D are possible explanations for higher salaries in large firms.

Which of the Following CANNOT Explain Why Large Firms Tend