Charlie Is the Owner of a Firm That Produces Bottled

question 233

Multiple Choice

Charlie is the owner of a firm that produces bottled water in Washington state.There are many other such firms in the area.Charlie 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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