Buddy Is the Owner of a Firm That Bottles Beer

question 19

Multiple Choice

Buddy is the owner of a firm that bottles beer in St.Louis,Missouri.There are many other such firms in the area.Buddy 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 costs of obtaining needed supplies.
• C)The higher the wage,the more he can charge for his beer
• D)The higher the wage,the more he will have to monitor his workers for shirking.