Question: agree or disagree these are the four ways in which...
Agree or disagree
These are the four ways in which a firm might increase profits due to efficiency wages: Worker Health - This is the simplest type of efficiency wage. A firm can profit from this by raising the minimum wage and therefore allowing their employees to be able to afford a better diet. Being healthier causes workers to work better and be more productive. Worker Turnover - With higher wages the firm is more likely to keep employees. These workers are less likely to leave in search of higher pay so the company will not become understaffed. Worker Quality - With better pay firms will keep and hire the most skilled workers. This will then boost their productivity based on the human capital used in production. Worker Effort - The more you pay workers the happier they will be and in turn the more effort will be put into the daily job. They will do their job more efficiently and be more productive.