(a) What is an Efficiency Wage? (b) Why is it Profitable for the Firm to pay an Efficiency Wage when Workers have better information about their Productivity than Firms do?

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BNP 13.2 (a) (b)
(a) What is an Efficiency Wage?
(b) Why is it Profitable for the Firm to pay an Efficiency Wage when Workers
have better information about their Productivity than Firms do?
Transcribed Image Text:BNP 13.2 (a) (b) (a) What is an Efficiency Wage? (b) Why is it Profitable for the Firm to pay an Efficiency Wage when Workers have better information about their Productivity than Firms do?
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