Problem
An economic consultant studies the labor policies of a firm where it is difficult to monitor workers and prepares a report in which she recommends that the firm raise employee wages. At a meeting of the firm's managers to discuss the report, one manager makes the following argument: "I think the wages we are paying are fine. As long as enough people are willing to work here at the wages we are currently paying, why should we raise them?" What argument can the economic consultant make to justify her advice that the firm should increase its wages?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.