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2 years ago

Why would a profit-maximizing firm pay its workers more than what workers are paid at other firms in the same market?

1 answer:

3 0

A profit-maximizing firm pays its workers more than what workers are paid at other firms in the same market, this efficient wage decrease shirking, increase retention, higher quality recruits, and healthier employees

"Profit-maximizing firms pay their workers more than what workers are paid at other firms in the same market" What was the purpose behind this?

This efficiency wage is designed to reduce employee turnover, boost productivity and morale among employees, and enhance the pool of qualified job applicants. These goals may be attained by paying a salary rate above the going rate because doing so raises the opportunity cost of leaving or being dismissed. Paying an efficiency wage may actually result in lower labor expenditures for the company because acquiring and terminating staff can be expensive.

What does the efficiency wage theory suggest?

The efficiency wage hypothesis, often known as the notion of efficiency wages, contends that salary and worker productivity are positively correlated. In other words, a worker who is paid more will put in more effort and generate more output than one who is paid the wage determined by supply and demand.

Learn more about efficiency wage theory: brainly.com/question/13782323

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A company that is organized by function will group its employees into teams based on what?

Lostsunrise [7]

The correct answer is A because you are going to split the workers up in what type of work they do.
<span>Hope I helped</span>

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3 years ago

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Femur Co. acquired 70% of the voting common stock of Harbor Corp. on January 1, 2019. During 2019, Harbor had revenues of $2,500

Marysya12 [62]

Answer:

Explanation:

The noncontrolling interest's share of the earnings of Harbor Corp. for 2019

= ($2,500,000 - $2,000,000- $60,000) * 0.3 = 440,000*0.3 = $132,000

Amount of consolidated net income for 2019 should be allocated to Femur’s controlling interest in Harbor

= $440,000 - $132,000 = $308,000

Amount Femur Co. would report as consolidated net income for 2019:

= $(4,500,000-3,000,000) + $308,000 = $1,500,000 + $308,000 = $1,808,000

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4 years ago

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A produce distributor uses 776 packing crates a month, which it purchases at a cost of $9 each. The manager has assigned an annu

Westkost [7]

Answer:

$261.42

Explanation:

economic order quantity (EOQ) = √(2SD/H)

S = cost per order = $31

D = annual demand = 776 x 12 = 9,312

H = holding cost = $9 x 36% = $3.24

EOQ = √[(2 x $31 x 9,312) / $3.24] = √178,192.59 = 422.13 ≈ 422

total ordering and holding costs considering EOQ:

ordering costs = (9,312 / 422) x $31 = $684.06

holding costs = $3.24 x (422/2) = $683.64

total = $1,367.70

current costs:

ordering costs = $31 x 12 = $372

holding costs = $3.24 x (776/2) = $1,257.12

total = $1,629.12

annual savings = $1,629.12 - $1,367.70 = $261.42

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3 years ago

Imagine that your friend is the CEO of a company, called Magna Clothes, that manufactures cool new clothing accessories for both

astraxan [27]

Answer:

a) The WTO allows countries to have observer status before becoming full members, so they can follow discussions on topics that are of direct interest to them.

⇒ TRUE, that way potentially new members get to understand how the WTO works.

c) The WTO came into existence in January 1995.

⇒ TRUE, the WTO birthday is January 1, 1995.

d) Opponents of the WTO sometimes contend that the organization focuses too narrowly to the globalization of trade, at the expense of human rights and the environment.

⇒ TRUE, the WTO's focus is on trade, and it tends to ignore many social and environmental factors.

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3 years ago

During 2019, Sigma Company earned service revenue amounting to $700,000, of which $630,000 was collected in cash; the balance wi

Kryger [21]

Answer:

$700,000

Explanation:

As we know that

The income statement is the statement that records the income and the expenditure for a company

The expenses should be shown on debit side while the income or revenue is shown on the credit side

Since the total service revenue earned is $700,000 and the same is to be shown in the income statement as it records all the cash and credit sales or service revenue

Therefore, the total amount i.e $700,000 is reported on the income statement

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3 years ago