Multiple Choice
A firm uses an efficiency wage scheme to deter workers from shirking,which is detected 10% of the times.Suppose a risk-neutral worker that has a reservation wage of $500.The industry ongoing wage is $1000.What is the efficiency wage paid by this firm?
A) $6,000
B) $5,000
C) $1,500
D) $2,000
Correct Answer:
Verified
Correct Answer:
Verified
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