What would happen if a firm decided to pay less than the going market wage rate?

If a firm pays less than the going market wage rate, it may struggle to attract and retain qualified employees, leading to higher turnover and recruitment costs. Additionally, lower wages can result in decreased employee morale and productivity, as workers may feel undervalued. Over time, the firm could suffer from a lack of skilled labor and diminished competitiveness in the market. Ultimately, this strategy could harm the firm's long-term profitability and reputation.