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Management · Q224

Labour and Social Welfare

Graduate and Post Graduate · Management · question 224

Q224

According to the efficiency wage model firms will pay the real wage that

A.
maximises worker's marginal productivity
B.
maximises the marginal productivity of capital and the marginal productivity of labour together
C.
maximises efforts in ratio of real wage
Answer
D.
minimises hiring and training costs to the firm

Answer: Option C

Solution

Answer: Option C
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