Harry recently raised his employees' wages, which has increased production costs. Which factor did the salary hike affect?

Question

anonymous · Answer

labour charges??

anonymous · Answer

http://www.wisegeek.com/does-raising-the-minimum-wage-cause-inflation.htm

anonymous · Answer

Labor is a variable cost. Total Cost = Fixed Cost + Variable Cost. Variable costs are costs that depend on quantity produced. So if a firm wants to increase how much it produces it may have to increase its Labor costs.

anonymous · Answer

Thank you everyone.

anonymous · Answer

Which of these statements explains the term price? 

A) The money spent by a seller to advertise a product
B) The money spent by a manufacturer to make a product
C) The money spent by a buyer to purchase a product

anonymous · Answer

C) The money spent by a buyer to purchase a product

anonymous · Answer

Its B, short term or long term are the possible lengths of time, also called short run and long run. assuming you are dealing with microeconomics