Final answer:
To reduce costs of turnover, a firm can invest in technology and human capital, provide incentives, and adopt strategies to reduce turnover.
Step-by-step explanation:
To reduce costs of turnover, a firm can do the following:
- Invest in technology, human capital, and physical capital to improve productivity and efficiency.
- Provide incentives within a market-oriented economic context to motivate employees and increase retention.
- Implement strategies to reduce turnover, such as fostering a more educated workforce, adopting fiscal policies that encourage investment in human capital and technology, and creating a stable and market-oriented economic climate.
By implementing these measures, firms can reduce the costs associated with turnover and create a more stable and productive workforce.