Final answer:
According to the O-Ring Model, workers performing the same task in a high-skill firm will typically earn higher wages due to greater productivity from the use of sophisticated equipment and capital investments.
Step-by-step explanation:
One implication of the O-Ring Model is that workers performing the same task in a high-skill firm will typically earn higher wages. This model suggests that tasks are interdependent and the overall success of a project is sensitive to the performance of every single task. Therefore, if one worker performs poorly, it can potentially reduce the productivity of all the others.
In firms that demand high levels of skill, workers are often matched with sophisticated equipment and capital, as the firm invests more in machinery and technology. Due to this matching, workers can become more productive and therefore earn higher wages since they are contributing to a higher output. This is consistent with what happens when management decides to invest in more or better physical capital equipment in response to demands for higher wages, leading to increased productivity for union workers compared to nonunion workers.
Hence, the choice B) higher is the correct answer for the wage implications in a high-skill firm according to the O-Ring Model.