1. Some firms will make more profits if they pay their workers above market price

2. Output Wage y x z ww q q100 $5 s wzwz qzqz - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

3. y x At point y an increase in wages leads to an even greater increase in output, so it is logical to increase wages to point x z Output Wages

4. Fear of getting fired “Sociology” of the work place Lower turnover rate “Select” pool of workers Adequate nutrition

5. in caloric intake among farm workers increase productivity about 3.4 percentage points A ten% increase

6. Jobs consisted of simple work. Turnover was high.

7. By 1915 turnover rate dropped 16%. Productivity increased per worker by 40 to 70%. Profits increased by 20%

8. d d2d2 s Dollars Employment

9. - - - - - - - - Unemp. Wages Q Emp.