If a firm observes an increase in its profit after raising wages for its employees, which of the following is the most likely underlying cause for this change in profit?

When a firm raises wages for its employees, it can lead to an increase in profit for a few reasons. First, higher wages can motivate employees to work harder and be more productive, as they feel more valued and satisfied with their jobs. This increased productivity can result in more output or better quality products, which can attract more customers and boost sales. For example, if a factory raises wages, workers might put in extra effort to meet production goals, leading to a higher number of products sold. Therefore, the most likely underlying cause for the increase in profit after raising wages is the boost in employee motivation and productivity.