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 more he can charge for his beer
b. the higher the wage, the more he will have to monitor his workers for shirking.
c. the higher the wage, the lower will be the costs of obtaining needed supplies.
d. the higher the wage, the less often his workers will choose to leave his firm.
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Baldwin has negotiated a new labor contract for the next round that will affect the cost for their product bold. labor costs will go from $7.91 to $8.41 per unit. in addition, their material costs have fallen from $13.66 to $12.66. assume all period costs as reported on baldwin's income statement remain the same. if baldwin were to pass on half the new costs of labor and half the savings in materials to customers by adjusting the price of their product, how many units of product bold would need to be sold next round to break even on the product?
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Buddy is the owner of a firm that bottles beer in st. louis, missouri. there are many other such fir...
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