The Krisp Kracker company which makes unique kettle chips for restaurants, clubs and events, has just lost a large client that made up 55% of its total revenue. Management finds it necessary to reduce staff or wages. This comes only three months after hiring 35 new people to support this big client. While there are rumors of wage reductions in the short run, the 100 employees who have been with the company for the past two years are grumbling that they are more valuable than the new hires who should be let go and the wages not reduced. The situation at Krisp Kracker illustrates which wage stickiness theory is best? A. Implicit contract theory B. Insider-outsider model C. Relative wage coordination argument

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