An efficiency wage is higher than the equilibrium wage to motivate the employee to work hard.

Name: An efficiency wage is higher than the equilibrium wage to motivate the employee to work hard.
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An efficiency wage is intentionally set higher than the equilibrium wage as an incentive for employees to work harder and perform better on the job. This approach can lead to reduced turnover, improved morale, and increased productivity.

An Efficiency Wage Is Higher Than the Equilibrium Wage to Motivate