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Passive Income Takes Time
While the total fastened prices was relatively secure up until the 49th worker, once an extra worker was hired, the total fastened costs spiked and increased along with the total variable prices. Possible reasons for this improve in fastened prices might be as a outcome of positive “spillovers”, the place whole fastened prices might escalate because of the additional monthly reports carried out on the employees or tax etc. Moreover, it is evident from the research that flexible wages encourage employment and promotes employee welfare. However, it is worth noting that companies with employee numbers above 50 become rigid on their wage allocation for every worker.