Great Deal! Get Instant $10 FREE in Account on First Order + 10% Cashback on Every Order Order Now

If workers are paid efficiency wages, why there is unemployment?

1 answer below »
If workers are paid efficiency wages, why there is unemployment?
Answered Same Day Dec 25, 2021

Solution

Robert answered on Dec 25 2021
125 Votes
Efficiency wage is a wage which is higher than the market equili
ium wage rate. Which creates
unemployement
This graph shows how efficiency wages create unemployement.
According to graph market wage rate is 3 where demand of labor and supply for labour is equal (at point
E). When firm offer...
SOLUTION.PDF

Answer To This Question Is Available To Download

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here