A Firm May Pay Efficiency Wages in an Attempt to

question 14

Multiple Choice

A firm may pay efficiency wages in an attempt to

• A)reduce incentives to shirk.
• B)reduce turnover.
• C)attract a well-qualified pool of applicants.
• D)All of the above are correct.

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Definitions:

Marginal Utility

The additional satisfaction or utility that one receives from consuming one more unit of a good or service.

Donut

A fried dough confection or dessert food, usually ring-shaped or without a hole and filled with various sweet fillings or toppings.

Total Utility

The total satisfaction or benefit received from consuming a particular quantity of a good or service.

Donuts

A sweet, fried or baked pastry, often circular with a hole in the middle, available in various flavors and toppings.