Business, 25.06.2019 04:40 jpimentel2021

Arecent industry report concluded that the global demand for the good x is expected to increase. based on the demand projections given in the report colaba, a firm that produces and sells x, is contemplating hiring more labor to increase production. maria williams and christopher lockhart, both stock market analysts, are discussing the prospects of the firm. maria thinks that colaba is a good stock to buy because she expects their profits to increase. christopher's opinion differs. he says that an increase in colaba's workforce will only increase the wage bill and reduce its profits. colaba decided to increase the size of its workforce by 5 percent, expecting profits to increase. however, the firm's profits dipped considerably in the next quarter. which of the following can best explain this outcome?

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