Pay rates within a firm seem to show less variation than marginal productivity rate differences.This is because
A)Firms can not measure marginal productivity accurately
B)Firms compensate their high producers with non-monetary perks
C)Social norms do not allow employers to pay high productivity wages
D)As much as possible firms try to pay employees the same rate for fairness reasons

Question

Quizplus · Accepted Answer

Firms compensate their high producers with non-monetary perks, such as promotions, bonuses, and flexible work arrangements.

Pay Rates Within a Firm Seem to Show Less Variation