If labor costs are 60 percent of production costs, then a 15 percent increase in wage rates would increase production costs by: A. 60 percentB. 45 percentC. 15 percentD. 9 percent

Answered: If labor costs are 60 percent of…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If labor costs are 60 percent of production costs, then a 15 percent increase in wage rates would increase production costs by:
A. 60 percent
B. 45 percent
C. 15 percent
D. 9 percent

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Step 1

Production cost refers to the money expenses incurred on various inputs such as raw material, inventory, labor and other factors of productions for the production of goods and services.

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