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

question 2

Multiple Choice

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

• A)Firms that offer delayed-compensation schemes are legally barred from firing workers.
• B)Profits would increase by allowing the worker to continue work at a lower wage.
• C)The worker will have already retired by the time the worker's value of marginal product equals 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.

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Definitions:

Eschar

A dry, dark scab or falling away of dead skin, typically resulting from a burn or wound.

Subcutaneous Tissue

The layer of tissue lying just below the dermis of the skin, containing fat and connective tissues that insulate and protect the body.

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A research project initiated by Lewis Terman that started in 1921 to study the development and characteristics of gifted children into adulthood, providing valuable insights into intelligence and achievement.

Gifted Individuals

People who exhibit high levels of aptitude or competence in one or more domains at levels significantly beyond what is considered typical for their age.