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> Why would a company pay more than they need to?

There is the prestige factor. And of course pressure from the employees. If you are making $600K per employee and it's public, they'll demand more.

> I would pay 4x the price for grapes if required. I don't as I would prefer to spend less on grapes.

But you do. That's the point. If you make $600K and another person makes $100K, you are far more likely to buy grapes whenever you want/need rather than waiting for the grapes to be on sale.

> Unless there is something that prevents from from becoming mid-level engineers. Like companies that don't hire junior level engineers at all and have mid-level be the entry level.

But the tech industry favor junior/younger employees. Ageism is a thing in the tech industry.



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