Why Might a Large Firm Actually Be at an Advantage

question 19

Multiple Choice

Why might a large firm actually be at an advantage over a smaller firm with respect to labor?

• A)Large generally pay a compensating differential to attract workers
• B)Worker turnover is generally lower
• C)Large firms enjoy better scale economies when negotiating with health insurance companies for health benefits
• D)Large firms are generally less attractive to qualified,upward mobile workers
• E)Large firms often have to draw workers from a greater distance to fill their ranks

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