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Alex73 [517]
2 years ago
9

_____________________ argues that the productivity of workers will increase if they are paid more, and so employers will often f

ind it worthwhile to pay their employees somewhat more than market conditions might dictate.Efficiency wage theoryEquilibrium wage theoryEmployee wage theoryEmployer wage theory
Business
1 answer:
den301095 [7]2 years ago
4 0

Answer:

Efficiency wage theory. Option A

Explanation: Efficiency wage theory is the idea that an increase in wages will lead to more productivity among workers because they will feel more motivated to work.

This is important for the employers also, because it will lead to higher productivity if they paid their employees more than what the market conditions dictate.

For example in a competitive labour market, employer A will enjoy more productivity and employee loyalty than employer B if employer A paid $10/hr and employer B paid $5/hr, in the same industry.

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2 years ago
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Hello. You did not present a diagram to which the question refers. However, I will try to help you in the best possible way.

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