Firms with increasing productivity rates can provide higher wage increases to employees more easily than firms with declining productivity rates.

Question

Quizplus · Accepted Answer

As firms with increasing productivity rates are able to generate more revenue and profit, they have more resources available to offer higher wages to employees. On the other hand, firms with declining productivity rates may struggle financially, making it difficult to provide significant wage increases.

Firms with Increasing Productivity Rates Can Provide Higher Wage Increases