A firm may benefit by paying workers more than the market clearing wage because the higher wages may lead to all of the following except

Question

Quizplus · Accepted Answer

Paying higher wages than the market clearing wage can lead to several benefits for a firm, including lower worker turnover, improved worker morale, and reduced shirking of work. However, it is unlikely to result in reduced taxes as taxes are not directly related to wage payments.

A Firm May Benefit by Paying Workers More Than the Market