Whenever an input makes up a large percentage of a good's final cost, an increase in that input's price will
A) affect total cost relatively more.
B) not affect total revenues.
C) affect only accounting profits.
D) cause the firm to shutdown.
A
Economics
You might also like to view...
Assume that a firm pays its workers above the market-clearing wage in a competitive industry. Explain how this might be a strategy to mitigate the problem of moral hazard?
What will be an ideal response?
Economics
The difference between the marginal expenditure and the wage is greater when the supply curve of labor is
A) less elastic at the monopsony optimum. B) more elastic at the monopsony optimum. C) more elastic than the demand curve. D) The difference does not depend on any elasticity.
Economics