Question: Assume the following general efficiency wage model. The function for worker effort at each firm is: e= W-X if w>x and 0 otherwise x=(1-bu)wa

Assume the following general efficiency wage model. The function for worker effort at each firm is: e= W-X if w>x and 0 otherwise x=(1-bu)wa where w is the wage that an individual firm pays, 0 0

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