Paying an Above-Equilibrium Wage Rate Might Reduce Unit Labor Costs

question 169

Multiple Choice

Paying an above-equilibrium wage rate might reduce unit labor costs by

• A) permitting the firm to attract lower-quality labor.
• B) increasing the opportunity cost to workers of being fired for shirking.
• C) increasing voluntary worker turnover.
• D) increasing the supply of labor.

---

Definitions:

Feedback

Information given to a person or system about their performance or behavior, intended to guide future improvements.

Strategically

In a manner that is carefully planned to achieve a specific end or advantage.

Communication

The process of transmitting information, ideas, emotions, skills, and knowledge from one person or group to another.

Negotiation

A dialogue between two or more parties aimed at reaching a consensus or resolving a problem.