If Company a Raises Its Pay Rate by One Dollar

Multiple Choice

If Company A raises its pay rate by one dollar per hour to hire additional workers and competitors immediately match the increase, what will be the most likely result?

A) The labor costs for Company A will increase, but it will be unable to hire additional workers.
B) Company A will hire the needed workers at a higher wage rate.
C) Competitors of Company A will lose employees to Company
D) Company A will hire higher quality workers.