A company has two locations where it employs workers doing the same job and working the same hours. Other things the same most workers would prefer to live in location A$,$ but location A has a higher cost of living than location $B.$

The company likely needs to pay workers in location A more.

It's not clear if the company would need to pay more to workers in location A or location B$.$

The company must pay workers the same amount.

The company likely needs to pay workers in location B more.