You are the vice president of a firm. After some analysis, you have determined that increasing the salaries of your workers by 10% will likely help increase your firm's profits. As a result of this finding, you meet with your firm's CEO and urge them to implement this 10% pay raise.

a) Describe one argument in favour of this 10% pay raise that centers on its potential to improve worker productivity. (2 marks)

b) Describe one argument in favour of this 10% pay raise that centers on its potential to lower your firm's total costs. (2 marks)