Which of the following reasons explains why companies might choose to pay efficiency wages?

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At market wage levels, employees may slack off when supervisors are absent because they feel secure from dismissal.At standard wages, workers frequently leave their positions to pursue better employment opportunities.At typical wage rates, only candidates with minimal qualifications tend to apply for the job.At prevailing wages, employees cannot afford nutritious food, causing them to become drowsy during work hours from low energy.All of the above reasons.

Explanation

Each of these factors—lack of concern about job loss, frequent quitting for better jobs, low-quality applicants, and poor nutrition leading to fatigue—illustrates why firms may opt to pay efficiency wages to improve worker performance and retention. Therefore, all the listed reasons contribute to the rationale behind efficiency wage payments.