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ejoty ejoty
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8 months ago
How do efficiency wages help increase a firm's profits?
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Macroeconomics

Macroeconomics


Edition: 3rd
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KimbletonKimbleton
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Efficiency wages are wages offered above the wages that workers would accept, where the premium is paid to increase worker productivity. They help increase a firm's profits in a number of ways, including the following:
i) Efficiency wages reduce worker turnover.
ii) The risk of losing a high-paying job motivates employees to work harder than they otherwise would.
iii) There is a possibility that employees are grateful for receiving an above-market wage, leading them to work harder.
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ejoty Author
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8 months ago
this is exactly what I needed
mikey3091
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Yesterday
Thanks
jbarnett14
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2 hours ago
Thank you, thank you, thank you!
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