Question

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

Answer 1

labour charges??

Answer 2

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

Answer 3

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.

Answer 4

Thank you everyone.

Answer 5

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

Answer 6

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

Answer 7

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