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Production department of the firm

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What type of impact would a wage increase forecast have in the production department of the firm?

  • Probably higher production costs, but the magnitude of the increase will also depend on how much sales might increase.
  • Probably lower production costs, because they depend on factors of production such as raw materials and technology.
  • Probably no impact, because production costs depend on factors of production such as raw materials and technology.
  • Probably higher production costs, but the magnitude of the increase will depend on how much sales might decrease.

Reference no: EM132922663

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