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A large manufacturing company pays most of its many factory workers minimum wage. Following a new law requiring increased minimum wage rates, the company's operating costs rose significantly. However, since the wage increase, the company's profits have risen dramatically.
Which of the following, if true, would help resolve this apparent paradox?
A. When the minimum wage increase took effect, company managers' salaries were also raised.
B. After the wage increase, payroll accounted for a higher percentage of operating costs than previously.
C. The company's customer base is made up of other manufacturers whose employees also earn minimum wage.
D. The company faced stiff competition from a new competitor in the period immediately following the wage increase.
E. As a result of the wage increase, the factory workers' productivity rose dramatically, resulting in lower costs-per-item produced.
OA E
Source: Princeton Review
Which of the following, if true, would help resolve this apparent paradox?
A. When the minimum wage increase took effect, company managers' salaries were also raised.
B. After the wage increase, payroll accounted for a higher percentage of operating costs than previously.
C. The company's customer base is made up of other manufacturers whose employees also earn minimum wage.
D. The company faced stiff competition from a new competitor in the period immediately following the wage increase.
E. As a result of the wage increase, the factory workers' productivity rose dramatically, resulting in lower costs-per-item produced.
OA E
Source: Princeton Review
