By paying low wages, factory owners were able to
increase their profits in a competitive environment.

avoid overcrowding and accidents on the factory floor.

hire fewer workers to perform a variety of tasks.

promise higher pay as an incentive to work harder

The correct answer is Option A) increase their profits in a competitive environment.

By paying low wages, factory owners were able to increase their profits in a competitive environment.

Labor costs made up a large portion of a factory's costs followed by machinery, maintenance and stock.

The easiest way to reduce costs for any factory or business at the time was to simply pay workers poorly. Since there were hardly any legislation for employees, and the fact that unemployment and poverty was very high, factory owners were able to exploit workers in order to make as much profit as they could.

keeping a cash reserve because cash flow is the the movement of money through a company and if it just sits there, it wont the movement