What Prevents a Firm from Offering a Delayed-Compensation Scheme to Its

question 24

Multiple Choice

What prevents a firm from offering a delayed-compensation scheme to its employees and then firing each worker when the worker's wage exceeds his or her value of marginal product?

• A)Firms that offer delayed-compensation schemes are legally barred from firing workers.
• B)Profits would increase by allowing the worker to continue on.
• C)The worker will have already retired by the time the worker's value of marginal product exceeds his or her wage.
• D)The firm would lose the trust of the workers, and new workers would not accept the payment scheme.
• E)Profits are insensitive to when the worker quits his job.

---

Definitions:

Transcranial Magnetic Stimulation

A noninvasive procedure using magnetic fields to stimulate nerve cells in the brain, often used in treating depression.

Mood Stabilizers

Medications used to treat mood disorders, such as bipolar disorder, by regulating mood swings and reducing manic and depressive episodes.

Social Phobia

A chronic mental health condition characterized by an intense, irrational fear of being watched, judged, or humiliated in social situations, leading to significant anxiety and avoidance.

Anti-anxiety Medications

Drugs prescribed to alleviate symptoms of anxiety by affecting the central nervous system.