Aaron Is the Owner of a Firm That Produces Wind

question 82

Multiple Choice

Aaron is the owner of a firm that produces wind power in southern Alberta. There are many such firms in the area. Aaron decides that if he pays his workers a wage higher than the going market wage, his profits will increase. What 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 wind power.
• D) The higher the wage, the less competition will be in the industry.

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Definitions:

Tuberosity

A large rounded projection on a bone, often serving as an attachment point for muscles and ligaments.

Brachioradialis

A muscle of the forearm that flexes the forearm at the elbow, especially when the forearm is in a position midway between pronation and supination.

Biceps Brachii

A large muscle on the front of the upper arm responsible for flexing the forearm and supinating the forearm.

Forced Inspiration

The act of taking a deep breath with the aid of muscles other than the diaphragm, such as the neck and chest muscles.