Why might some firms choose to pay workers a wage above the market equilibrium, even with a surplus of labor in the market? Check all that apply.Paying higher wages encourages workers to be more productive.Paying higher wages increases worker tumsover.Paying higher wages can reduce a firm's training costs.Paying higher wages tends to reduce the average experience level of a firm's workers.

Employers may choose for a variety of strategic reasons to pay employees more than the wage at which…

Answered: Why might some firms choose to pay…

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter4: Extent (how Much) Decisions

Section: Chapter Questions

Problem 6MC

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Similar questions

Which of the following will increase the market demand for labor, ceteris paribus? An increase in the wage paid to labor. An increase in the productivity of labor. A decrease in the price of output produced by labor. A decrease in the number of available workers.
An increase in the productivity of labor induces a) a firm to hire fewer workers since fewer workers are needed with the increase in productivity. b)an increase in the cost of labor. c) a firm to offer a higher wage for workers since the workers are now more productive. d) an increase in the demand for labor.
Suppose a firm purchases labor in a competitive labor market and sells it product in a competitive product market. The firm's elasticity of demand for labor is -2.50. Suppose the wage increases by 4%. By what percentage will the quantity of labor hired by the firm change? Show your work.
Suppose a firm purchases labor in a competitive labor market and sells its product in a competitive product market. The firm’s elasticity of demand for labor is -0.4. Suppose the wage increases by 5 percent. What will happen to the number of workers hired by the firm? What will happen to the marginal productivity of the last worker hired by the firm?
If labor supply of unskilled workers is perfectly elastic, then a) the labor supply curve of unskilled workers is horizontal at the market-clearing wage. b) the labor supply curve of unskilled workers is vertical at the total number of unskilled workers in the market. c) firms face an increasing marginal cost of hiring unskilled labor. d) workers will supply more hours of labor to the market when wages increase. c) firms face a horizontal value of marginal product of employment curve.
The marginal product of hiring a fourth worker is 40 units of output. The wage rate is $15, and the price of output is $2. How much will the fourth worker increase the firm's revenue? $30 $40 $60 $20 $80
Calculate the compensation of employees if the NDPFC is $20000, operating surplus is $11,000 and the mixed income is $4000
Listed are scenarios that may lead to changes in labor market conditions for chefs. Use your knowledge of labor demand and supply curves to match each scenario to the appropriate category. Will cause a shift in the demand for labor Will cause a shift in the supply of labor Will cause a shift in both the demand for labor and supply of labor Will not result in a curve shifting A professional cooking tool is invented that reduces the number of chefs required to produce many dishes. The amount of training required to work as a chef increases. Wages for chefs increase. Answer Bank
A meeting of representatives for labor and management to negotiate contracts is called
Calculate the value of NDPFC if compensation of employees is $2300, Operating surplus is $500 and mixed income is $3300
In a competitive labor market, employers will not pay less than the market wage because at a wage below the equilibrium A) the equilibrium wage would rise B) they would not be able to hire anyone C) there would be a surplus of workers D) they would be inundated with excess workers
If the marginal product of labor increases because of a technological advancement, it will likely cause a fall in the number of workers employed. an increase in the price of output produced by labor. a fall in the wage paid to labor. an increase in demand for labor. an increase in the supply of labor.

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