The most important factor determining division of the product between wages and profits is
A) the level of technology.
B) the amount of labor required to produce the product.
C) the bargaining power between employees and employers.
D) federal minimum wages.

Question

Quizplus · Accepted Answer

The bargaining power between employees and employers is the most important factor in determining the division of the product between wages and profits. The amount of labor required and level of technology can also influence the division, but ultimately it is the negotiating power of each side that determines how the profits are allocated. Federal minimum wages can set a floor for wages but do not necessarily determine the final outcome.

The Most Important Factor Determining Division of the Product Between