What is a likely outcome when firms implement efficiency wages?

When firms implement efficiency wages, they typically pay their workers higher-than-market wages with the intention of incentivizing higher productivity. This practice encourages employees to work harder and be more committed to their jobs because they want to retain the higher-paying position. As a result, workers are less likely to shirk responsibilities, which can lead to enhanced productivity overall.

Additionally, by offering efficiency wages, firms can reduce hiring costs associated with high turnover rates. A commitment to a higher wage makes employees less likely to leave their jobs, leading to reduced recruitment and training costs associated with hiring new workers. Therefore, the combination of increased worker productivity and reduced turnover costs supports the outcome identified in the correct answer choice.

Firms also benefit by creating a more stable workforce, which can lead to better teamwork and collaboration, ultimately contributing to a more efficient operation.