Factory workers in Beltania are guaranteed lifetime jobs, bonuses paid

Question

Factory workers in Beltania are guaranteed lifetime jobs, bonuses paid on the basis of productivity and corporate profits, and a wage rate that is not attached to a particular job.
Paradoxically, these guarantees do not discourage factory owners from introducing labor-saving machinery. Such innovations are to the factory owners’ advantage despite the fact that the owners must protect the wages of their workers.

Which of the following, if true, most helps to explain why the introduction of labor-saving machinery is advantageous to factory owners?

A. Before a Beltanian Factory worker is hired, he or she must present a record of his or her previous productivity.

B. Labor-saving machinery increases productivity, thus yielding profits that more than cover the cost of retraining workers for other jobs.

C. The purchase and maintenance of new machinery adds significantly to the final cost of the goods produced.

D. Factory workers demand a change of procedure in the routine tasks they perform.

E. Limited competition exists among Beltanian factories for consumer markets.

Bunuel · Accepted Answer

OFFICIAL EXPLANATION

If the second answer choice is true, introducing labor-saving machinery results in additional profits even if it also requires the retraining of workers. Hence, this answer choice demonstrates the advantages to the factory owners of labor-saving machinery.  Thus, B is the correct answer.

The first answer choice is incorrect. Productivity in a previous job may relate to productivity in the job for which a worker is hired. However, if the worker’s job is eliminated by new machinery, the factory owner loses the advantage of having been able to select a highly productive worker for that job. There is no indication in this answer choice of what advantage, if any, the owner gains. C is incorrect. Since increased costs, other things being equal, mean decreased profits, this answer choice suggests the change is disadvantageous to the factory owners. D is also incorrect. Changes of procedure may result for those employees whose jobs are eliminated by the introduction of machinery, but would not necessarily result for a substantial number of factory workers. The owners have an advantage only if a substantial number of workers have been satisfied. Thus, this fourth answer choice cannot explain why the change is advantageous. The last answer choice is incorrect. Limited competition might imply that the factory owners will be able to sell their products, even if the price must be raised to cover new machinery as well as wages. Although this does not harm the factory owners, it does not suggest an advantage either.

DavidTutorexamPAL · Answer

the answer is B. 
As it is not entirely clear off the bat what we are looking for, we'll use the  Alternative  approach and look at the answers, looking for a reason tat labor sting machinery would be good for the owners:

A. Before a Beltanian Factory worker is hired, he or she must present a record of his or her
previous productivity.  Not clear how this is relevant 
B. Labor-saving machinery increases productivity, thus yielding profits that more than cover
the cost of retraining workers for other jobs.  Yes! not only is this obviously a good effect, it is also explicitly a stronger effect than the negative one mentioned in the stem (needing to keep the workers and pay them quite a lot,, in addition to retraining cost)  
C. The purchase and maintenance of new machinery adds significantly to the final cost of the
goods produced.  No - this hurts the explanation, giving a reason why this would hurt owners 
D. Factory workers demand a change of procedure in the routine tasks they perform.  Perhaps this helps a little (in that it tells us that the factory would have an additional reason to switch workers around, which the machines require), but it definitely doesn't give as strong a reason as (B) to implement this (why should the owners care that workers demand this? Why not switch them amongst themselves - who needs machines to implement this?)  
E. Limited competition exists among Beltanian factories for consumer markets  No- all this tells us is that the stakes are high, not that is a good or bad move either way

rohit8865 · Answer

B. Labor-saving machinery increases productivity, thus yielding profits that more than cover the cost of retraining workers for other jobs.

Option B seems best to me

abhinav2892 · Answer

Option B clearly explains why addition of machines is advantageous to the companies despite the obligation of retaining the employees

VerbalBot · Answer

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Factory workers in Beltania are guaranteed lifetime jobs, bonuses paid

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Factory workers in Beltania are guaranteed lifetime jobs, bonuses paid

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