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Comparing Wage Subsidy Policies
A factory plans to pay new hires a weekly wage of $600. The government is considering two different wage subsidy policies to encourage hiring.
- Policy A: A 15% subsidy on the worker's wage.
- Policy B: A flat subsidy of $100 per worker, per week.
Which policy would result in a lower net labor cost for the factory for each new hire? Show your calculations for both policies to justify your answer.
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