Suppose there is no uncertainty about sales.Firms can avoid hiring lazy workers by
A) offering contingent contracts.
B) fixed wage contracts.
C) engaging in cheap talk.
D) All of the above.

Question

Quizplus · Accepted Answer

Offering contingent contracts allows firms to tie compensation to performance, thus incentivizing workers to avoid laziness and perform better, as their pay depends on their output or achievements. Fixed wage contracts and cheap talk do not inherently provide a mechanism to avoid hiring lazy workers, as they do not directly link pay to performance.

Suppose There Is No Uncertainty About Sales