Arnnie is the owner of a firm that produces bottled water in Washington state.There are many other such firms in the area.Arnnie 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?

Question

Quizplus · Accepted Answer

By paying workers a higher wage than the market rate, Arnnie is likely to reduce employee turnover and increase retention. This can lead to cost savings in terms of recruitment and training, and can also increase worker productivity and motivation.

Arnnie Is the Owner of a Firm That Produces Bottled