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Efficiency wage (extra wage paid to promote performance) causes unemployment because

A) firms pay wages that are below the market wage, causing the quantity of labor demanded to be greater than the quantity of labor supplied.

B) firms pay wag's that are below the market wage, causing the quantity of labor demanded to be less than the quantity of labor supplied.

C) firms pay wages that are above the market wage, causing the quantity of labor demanded to be greater than the quantity of labor supplied.

D) firms pay wages that are above the market wage, causing the quantity of labor demanded to be less than the quantity of labor supplied.

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Joshua Stredder
Joshua StredderLv10
18 Mar 2021
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