1 Factory workers in Beltania are guaranteed lifetime jobs, bonuses paid on the
basis of productivity and corporate profits, and a wage rate that is not attached
to a particular job. Paradoxically, these guarantees do not discourage factory
owners from introducing labor-saving machinery. Such innovations are to the
factory owners' advantage despite the fact that the owners must protect the
wages of their workers.
Which of the following, if true, most helps to explain why the introduction of labor-
saving machinery is advantageous to factory owners?
Before a Beltanian factory worker is hired, he or she must present a record
of his or her previous productivity.
Labor-saving machinery increases productivity, thus yielding profits that
more than cover the cost of retraining workers for other jobs.
The purchase and maintenance of new machinery adds significantly to the
final cost of the goods produced.
Factory workers demand a change of procedure in the routine tasks they perform.
Limited competition exists among Beltanian factories for consumer markets.