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There are 3 other variables to consider:

1. How low a quality of service are customers willing to bear, trading off price and quality?

2. What is the supply of such lower-rate employees who can continue feeding the beast, once the trained employees become too expensive for the company to keep? If they could afford to keep well-trained employees, they probably would be able to attract good employees from the get go.

3. How good is the company's employee retention rate for keeping well-trained employees without significantly raising salaries?



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