1 Factory workers in Beltania are guaranteed lifetime jobs, bonuses paid on the, W2 D. |( m; q0 Q- @$ J
basis of productivity and corporate profits, and a wage rate that is not attached4 Y1 Z+ @7 G2 s' c4 @
to a particular job. Paradoxically, these guarantees do not discourage factory
: Q# N5 @" i0 }& Z6 Downers from introducing labor-saving machinery. Such innovations are to the
. V2 h7 @. ?$ r( Cfactory owners' advantage despite the fact that the owners must protect the
& I* a' s5 ?0 ~- J9 I; U9 s" qwages of their workers.
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A Which of the following, if true, most helps to explain why the introduction of labor-1 x7 T, n; ]! q
saving machinery is advantageous to factory owners?
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# a7 }3 ` [+ z# T) J2 pB Before a Beltanian factory worker is hired, he or she must present a record" e; b; B$ l7 |. R; z
of his or her previous productivity.
) ^+ f: S0 C. E/ PC Labor-saving machinery increases productivity, thus yielding profits that
k( z5 d6 ?- k" w( L2 x% E more than cover the cost of retraining workers for other jobs. 4 c! a$ r+ ?$ K! `! x4 a
D The purchase and maintenance of new machinery adds significantly to the
7 R9 `/ V8 d/ W- H. |0 X2 i final cost of the goods produced. * X# r1 x; |0 v0 d+ k% k
E Factory workers demand a change of procedure in the routine tasks they perform. $ e8 c( \( ?# I4 e. @: I
Limited competition exists among Beltanian factories for consumer markets. |