Brian Is the Owner of a Firm That Produces Bottled

question 312

Multiple Choice

Brian is the owner of a firm that produces bottled water in Washington state. There are many other such firms in the area. Brian decides that if he pays his workers a wage higher than the going market wage, his profits will increase. Which of the following is a likely explanation for his decision?

• A)The higher the wage, the less often his workers will choose to leave his firm.
• B)The higher the wage, the lower will be the cost of obtaining needed supplies.
• C)The higher the wage, the more he can charge for his water.
• D)The higher the wage, the more he will have to monitor his workers for shirking.

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Definitions:

Digital Divide

The gap between individuals, households, businesses, and geographic areas at different socioeconomic levels with regard to their access to information and communication technology.

FCC Subsidies

Financial assistance programs provided by the Federal Communications Commission to promote access to telecommunications services in underserved or high-cost areas.

Entry Barriers

Factors or conditions in the marketplace that make it difficult for new competitors to enter a market or industry.

Competitors

Other businesses or individuals who offer similar goods or services, competing for the same customers or market share.