Questions: Which of the following affects employers' decisions on how much to pay their workers? (5 points) Maximizing costs Maximizing profits Minimizing profits Minimizing benefits

The answer is B: Maximizing profits.

Explanation for each option:

• Maximizing costs: This is incorrect. Employers generally aim to minimize costs, not maximize them, to ensure the business remains profitable. High costs can reduce profit margins, so this is not a factor that would positively influence how much employers decide to pay their workers.

• Maximizing profits: This is correct. Employers often decide on wages based on the goal of maximizing profits. They need to balance paying competitive wages to attract and retain skilled workers while also ensuring that labor costs do not eat too much into their profit margins. This involves setting wages at a level that supports productivity and business growth.

• Minimizing profits: This is incorrect. No business aims to minimize profits, as profits are essential for business sustainability, growth, and shareholder satisfaction. Therefore, this would not be a factor in determining worker pay.

• Minimizing benefits: This is incorrect. While minimizing benefits might reduce costs, it is not a direct factor in determining wages. Additionally, offering competitive benefits can be a strategy to attract and retain employees, which can indirectly affect wage decisions. However, the primary focus in wage determination is often on maximizing profits rather than minimizing benefits.