Sweatshop wages are low because workers in the sweatshops have low opportunity costs.

Question

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Low opportunity costs mean that workers in the sweatshops do not have many alternative job opportunities that pay more than their current wages. As a result, they are willing to work long hours for low pay in order to sustain their livelihoods. This creates a situation where employers do not have to offer higher wages to attract workers, as there is a large pool of people who are willing to work for low wages due to their limited job options.

Sweatshop Wages Are Low Because Workers in the Sweatshops Have