Why might some firms choose to pay workers a wage above the market equilibrium, even with a surplus of labor in the market? Higher wages cause workers to shirk more of their responsibilities. Paying higher wages can reduce a firm's training costs. Paying higher wages increases worker turnover. Paying higher wages tends to reduce the average experience level of a firm's workers.

Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
ChapterP3: Market Structure
Section: Chapter Questions
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Why might some firms choose to pay workers a wage above the market equilibrium, even with a surplus of labor in the market?

Higher wages cause workers to shirk more of their responsibilities.

Paying higher wages can reduce a firm's training costs. Paying higher wages increases worker turnover.

Paying higher wages tends to reduce the average experience level of a firm's workers.

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