Question

Business owners generally paid low wages in factories because A. government regulation lowered production costs. B. they wanted to maximize worker productivity. C. keeping wages low meant lower production costs. D. labor unions were focused on worker safety rather than pay.

Answer 1

Business owners typically pay low wages to maximize profits and stay competitive. Over time, unionized labor saw increased wages and benefits, but protectionism in certain industries hurt low-wage workers by raising the costs of essentials.

Step-by-step explanation:

Business owners generally paid low wages in factories because keeping wages low meant lower production costs. By minimizing labor expenses, they could increase profit margins and remain competitive in an industrial landscape characterized by both fierce competition and a surplus of low-skill labor. As industrialization increased, the demand for profit led to increased pressure on workers to produce more for less pay. On the other hand, the growth of labor unions and heightened negotiation power eventually led to improved wages and benefits for many workers, including higher pay and fringe benefits such as pensions and health insurance.

However, low-wage workers have also suffered due to protectionism, which raises the prices of protected goods like food and clothing. Thus, even as they earn their wages, their purchasing power is limited by the higher costs of these essential goods, impacting their overall quality of life.

Answer 2

Answer: Option C

Explanation: In simple words, production cost refers to the amount of total output that the organisation spend on the process of producing the commodity they are offering.

The wages of workers is a constituent of production cost. Higher production cost lead to lower profits. Therefore, the organisations always try to keep its production cost lower.

Hence from the above we can conclude that the correct option is C .