Ellen Decides to Hire Some Additional Workers for Her Vinyl

Multiple Choice

Ellen decides to hire some additional workers for her vinyl siding factory.The equilibrium wage is $14 per hour.Efficiency wage theory suggests that it is reasonable for Ellen to offer

A) $14 per hour.
B) less than $14 per hour,since some people would be willing to work for less.
C) less than $14 an hour to prevent shirking.
D) more than $14 per hour,so as to attract a better pool of applicants.