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Answer to Question #181644 in Microeconomics for Junior Ortega

Question #181644

Suppose that the current production function for workers at McDonald's (L) in producing Hamburgers (H) is given by H = L. Now, suppose that McDonald's believe in the efficiency wage theory. What would be a plausible NEW production function for McDonald's workers after implementing an efficiency wage?


1
Expert's answer
2021-04-19T07:43:26-0400

W = H

where W = wage

this supports the efficiency wage theory to maximize workers output


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