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Unformatted text preview: an increased likelihood of shirking by workers. the potential that pay levels may get so high that they will increase a firm's marginal wage cost more than its marginal revenue product. a greater incentive for sales people to engage in unethical or fraudulent sales practices that may eventually cause legal problems for the firm. 6. Suppose that under its collective bargaining agreement the ABC Corporation can hire nonunion workers, but such workers must join the union within 30 days. This agreement embodies: a closed shop. an agency shop. an open shop. a union shop. 7. The idea of efficiency wages is that: workers are more diligent when paid below-equilibrium wages. firms might get greater work effort by paying above-equilibrium wage rates. the wages of each type of labor must be proportionate to their marginal products. the wages of each type of labor must be equal to their marginal products....
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This note was uploaded on 05/23/2011 for the course RBS 10 taught by Professor Ujlee during the Fall '11 term at Hogeschool Gent.
- Fall '11