Question

Why might some firms voluntarily pay workers a wage above the market equilibrium, even in the presence of surplus labor? Check all that apply.

Answer 1

Here are the reasons why some firms voluntarily pay workers salaries that are above the market equilibrium despite the presence of surplus labor:
-paying higher wages helps workers to be healthier in some developing countries.
-paying higher wages encourages workers to be more productive.
and lastly;
-higher wages attract a more competent pool of workers.