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Explain Why Each of the Following Businesses Would Have an Incentive

Question 202

Essay

Explain why each of the following businesses would have an incentive to pay the efficiency wage.
(A)A garden service that owns five trucks that it sends to households who purchase the service
(B)A fast-food restaurant
(C)A warehouse that uses a complicated computer system to track its inventory

Correct Answer:

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(A) The owner of the business cannot be ...

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