Answer to Question #62856 in Macroeconomics for Gian

Question

Efficiency wages can hel to reduce unit labor costs when ...(several answers possible)
(a) the labor productivity nonlinearly depends on the wage.
(b) the labor productivity rises faster than the wage increment.
(c) the elasticity of productivity with respect to the wage is larger than unity.
(d) the elasticity of productivity with respect to the wage is positive but less than unity.

Answer 1

b, c