If an additional dollar spent on monitoring would reduce shirking by 1
If an additional dollar spent on monitoring would reduce shirking by 10 minutes, then the firm will increase the worker’s wage by $1 if this caused
A) shirking to increase by less than 10 minutes.
B) shirking to decrease by more than 10 minutes.
C) shirking to decrease by less than 10 minutes.
D) monitoring to become unnecessary.
ANSWER
B
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