Firms might offer efficiency wages in order to attract a better pool of applicants.

Name: Firms might offer efficiency wages in order to attract a better pool of applicants.
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Question

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Efficiency wages are wages that are set above the market equilibrium in order to incentivize workers to be more productive and reduce turnover. By offering higher wages, firms can attract a better pool of applicants who are more skilled and motivated, leading to higher productivity and profits in the long run.

Firms Might Offer Efficiency Wages in Order to Attract a Better