Which of the following statements about efficiency wage theory is true ?
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A. Paying above the competitive equilibrium wage tends to cause workers to shirk their responsibilities
B. Paying the lowest possible wage is always the most efficient (Profitable)
C. Firms do not have a choice about whether they pay efficiency wages or not because these wages are determined by law
Found an error? Read our corrections policy and submit a sourced correction below. You can also share a useful explanation in your own words.