Question

Explain four ways in which a firm might increase its profits by raising the wages it pays sentence.  There should be +6 sentences (75 words) or you will not be given credit.

Answer 1

Four ways in which a firm might increase its profits by raising the wages would be because:

1) The firm would hire high skilled workers which would increase the productivity and output.

2) When workers are paid better,their motivation and loyalty to the firm increases which makes them more productive

3) when workers are paid well,their turnover decreases as they dont switch jobs more often.

4) Increased pay and incentive makes the workers work harder and put more effort to reach the firm's objective and goals.