Keegan, the human resource manager at R&S Inc., is advising the company's business executives that paying more for labor than competitors can support the company's strategy. Under what conditions might Keegan's idea be most valid?

A. R&S pays more to attract top talent, applying employees' knowledge to be more innovative than competitors.
B. R&S hopes other companies will eventually match R&S's pay scale.
C. Labor costs are a large part of R&S's total costs.
D. R&S intends to charge more than competitors for the same kinds of products.
E. R&S is developing a low-price strategy that will generate more sales.


Answer: A

Business

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