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3 December, 05:01

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

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  1. 3 December, 07:37
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    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.
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