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Fill in the blank. In order to encourage younger employees to increase their efforts and avoid being fired, a firm pays its entry level workers less than the worker's marginal revenue product. However, the older workers in the firm are paid more than their marginal revenue product. This type of compensation scheme is referred to as _________________.

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Fill in the blank. In order to encourage younger employees to increase their efforts and avoid being fired, a firm pays its entry level workers less than the worker's marginal revenue product. However, the older workers in the firm are paid more than their marginal revenue product. This type of compensation scheme is referred to as _________________.





 
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