A firm may pay efficiency wages in an attempt to
A)entice workers to work the night shift rather than the day shift.
B)improve productivity by reducing turnover.
C)reduce costs by attracting the least-skilled workers to apply for job vacancies.
D)All of the above are correct.

Question

Quizplus · Accepted Answer

Efficiency wages are higher than average wages paid by firms to motivate their employees to work efficiently, reduce turnover, and increase productivity. By paying higher wages, firms attract more productive employees who have a lower likelihood of quitting their jobs. This reduces employee turnover costs and ultimately improves the firm's overall productivity. Option A is incorrect as the decision to have employees work on a particular shift is not related to efficiency wages. Option C is incorrect as efficiency wages are paid to attract more productive employees, not necessarily the least-skilled workers. Option D is incorrect as options A and C are not correct.

A Firm May Pay Efficiency Wages in an Attempt to