Suppose a law firm negotiates a very low price for each of its 1000 employees to be members at the athletic club that is located next to the law firm. Which of the following is not likely to be true?
A. If the typical individual gym membership costs $50 per month, the law firm should expect to save $50,000 per month in wages.
B. The firm can likely negotiate a lower per person price at the gym than each employee could negotiate alone.
C. In the long run, the law firm will probably attract workers who value the gym benefit the most.
D. The law firm can pay its workers less than a comparable law firm that does not offer the gym benefit.
E. Some employees will take advantage of the gym benefit, while others will not.
Answer: A
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