1 Factory workers in Beltania are guaranteed lifetime jobs, bonuses paid on the
1 ]' N4 ?9 ?& A" {basis of productivity and corporate profits, and a wage rate that is not attached
1 ^/ b% O% d. ^. w6 \to a particular job. Paradoxically, these guarantees do not discourage factory
+ P$ P; A4 h' j! W' @; mowners from introducing labor-saving machinery. Such innovations are to the* y. y3 l" X+ P; P
factory owners' advantage despite the fact that the owners must protect the/ p9 F1 T4 }( T! B6 Q" f! Z
wages of their workers.; R6 j& l* P* ~
3 P" f6 x' i" [. r7 xA Which of the following, if true, most helps to explain why the introduction of labor-
; K3 R! g' M$ A1 t$ Q. f7 Hsaving machinery is advantageous to factory owners?: f0 \* ?. f5 i/ \% ]
* S+ f6 a0 n4 g( @: U5 W
B Before a Beltanian factory worker is hired, he or she must present a record
0 O/ F" |0 i$ B* X* w of his or her previous productivity. & n1 \* b% C" N1 a# S) ~
C Labor-saving machinery increases productivity, thus yielding profits that; ~# k# [) E$ H! q3 o
more than cover the cost of retraining workers for other jobs.
6 m/ c- E# p s# U- aD The purchase and maintenance of new machinery adds significantly to the
; H/ v( ~. c* X8 n* ~ final cost of the goods produced.
( @( D; ?% p3 \! G! QE Factory workers demand a change of procedure in the routine tasks they perform. 7 C( m+ s }4 A* K7 e: ]
Limited competition exists among Beltanian factories for consumer markets. |