Final answer:
A company paying more than necessary for a worker is practicing the efficiency wage model, which is aimed at increasing worker productivity and reducing turnover costs.
The correct option is a. Efficiency wage.
Step-by-step explanation:
The scenario described fits the concept of the efficiency wage. The efficiency wage theory states that employers may pay a wage that is higher than the minimum, living, or competitive wage due to the belief that higher pay can increase worker productivity. It suggests that by paying more, employees may feel more motivated to work harder, knowing they have a better salary compared to other available jobs. This incentivizes them to maintain their employment and discourages them from leaving, which reduces turnover costs for the company. Therefore, when a company pays knowingly more than it has to for a worker, it is indeed applying the efficiency wage model.
In this context, the correct option regarding why a company would willingly pay more for a worker is a) Efficiency wage.