Question

For the majority of companies, the most common increase in the cost of production results from rising ____.

a.) maintenance costs;
b.) energy costs;
c.) prices of raw materials;
d.) wages

Answer 1

The answer that you are looking for is D.

Answer 2

For the majority of companies, the most common increase in the cost of production results from rising "wages".

A rise in the wage rate increases the expenses of firms delivering the ware, constraining them to raise their moving costs. As the cost of the item rises purchasers will purchase less of it and less yield will be created and sold. This implies less work will be utilized. Second, since an ascent in wages makes work progressively costly with respect to capital, firms will substitute capital for work. This implies less work will be utilized to deliver whatever yield the organizations in the business move.