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sarref09
Answered

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


a)fixed cost

b)marginal cost

c)sunk cost

Verified Answer :

Aliwohaish12

sunk cost is investment
fixed costs do not change with changes in output
if the hours remain the same regardless of output, then this salary increase has increased fixed costs
if the hours fluctuate with output, then this increases variable cost.