Principles of Macroeconomics 7th Edition

Published by South-Western College
ISBN 10: 1-28516-591-8
ISBN 13: 978-1-28516-591-2

Chapter 15 - Unemployment - Questions For Review - Page 317: 7

Answer

Four reason's why a firm's profit might increase when it raises wages are: (1) worker turnover is reduced, (2) firm can attract high quality workers, (3) worker productivity is augmented, (4) better paid workers put in more effort and they lead healthier happier lifestyles.

Work Step by Step

This question asks you to identify ways in which increases in wages can help to better a firm.
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