Firms that pay efficiency wages are attempting to minimize
A) agency costs.
B) moral hazard problems.
C) asymmetric information.
D) all of the above.

Question

Quizplus · Accepted Answer

Efficiency wages are paid by firms to minimize issues such as agency costs, moral hazard problems, and asymmetric information by incentivizing employees to work harder, stay with the company longer, and be more productive, thus addressing all the mentioned concerns.

Firms That Pay Efficiency Wages Are Attempting to Minimize