A higher wage could result in a lower labor cost per unit of output than a lower wage if the higher wage
A)is accompanied by an offsetting decline in fringe benefits.
B)increases supervision costs.
C)reduces job turnover.
D)increases worker absenteeism.

Question

Quizplus · Accepted Answer

A higher wage can reduce job turnover, leading to more experienced and efficient workers, which can increase productivity and reduce the labor cost per unit of output.

A Higher Wage Could Result in a Lower Labor Cost