Answer: E. . All of the above affect the wage a firm is willing to pay its workers
Explanation:
The wage a firm is willing to pay its workers is affected by:
• The productivity of workers.
• Consumer demand for the goods and/or services that the firm creates.
• The amount of fringe benefits the firm is required by law to pay.
• The level of payroll taxes the firm must pay.
It should be noted that when there's increase in productivity and rise in demand for a good by consumers, companies will be willing to pay more for their workers.
Likewise a decrease in tax and fringe benefits affects companies paying ability.
