In the southern part of the country Nirobia, the workersat a factory owned by Mambiki & Co. have gone on a strikedemanding higher wages. Mambiki & Co. is a firm thatproduces auxiliary defense equipment for aircraft. A nationalbusiness daily reports that following the closure of the factoryfor 6 weeks, the management has finally agreed to the wagehike. Kiah Desmond and her friend Rania Ali, both studentsof economics, are discussing the news report in class. Kiahargues that the factory's profits are likely to fall due tothe wage hike. Rania on the other hand feels that Mambiki willincrease the price of their products in order to compensate for theincrease in costs.
Which of the following, if true, willstrengthen Kiah's argument?
A.
The workers at the plant are highly specialized and difficult toreplace.
B.
Mambiki & Co. also hires contract workers duringperiods of high demand.
C.
Firms in the defense equipment industry in Nirobia set up theirfactories on land that has been leased by the government atconcessional rates.
D.
Competing firms have hiked their prices recently.
E.
The Nirobian government provides workers with generous socialsecurity benefits.
In the southern part of the country Nirobia, the workers at a factory owned by Mambiki & Co. have gone on a strike dem
-
- Site Admin
- Posts: 899603
- Joined: Mon Aug 02, 2021 8:13 am