If labor costs are 60 percent of production costs, then a 15 percent increase in wage rates would increase production costs by <u>9 percent.</u>
<h3>
What are labor costs?</h3>
- The total of all employee wages, employee benefits, and payroll taxes paid by an employer constitutes the labor costs. Direct and indirect (overhead) labor costs are separated.
- While indirect costs are related to labor costs, such as personnel who maintain industrial equipment, direct costs include wages for the employees who make a product, including those on an assembly line.
- While indirect costs are related to support labor, such as personnel who maintain industrial equipment, direct costs include wages for the employees who make a product, including those on an assembly line.
- The price of goods or services may fluctuate away from their genuine cost if labor costs are poorly allocated or evaluated, which could hurt earnings.
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Answer:
This is an example of switch trading.
Explanation:
Switch trading is defined as a practice where one company goes into agreement with another company located in a different country to commit in the purchase of each company’s goods and services. This common practice is part of the countertrading category, which is the exchange of goods and services with other goods and services. Other examples of countertrading include barter, counter purchase, buyback, offset, and compensation trade.
Answer:
the low opportunity cost producer.
Explanation:
A person or nation has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries or people.
For example, let's assume country x produces either 10 Apples or 5 oranges in 1 hour while country y produces either 20 Apples or 2 oranges in one hour. The opportunity cost for country x of producing apples and oranges are 0.5 and 2 respectively. While for country y, the oopportunity cost of producing apples and oranges are 0.1 and 10 respectively.
Country y has an opportunity cost and comparative advantage in the production of Apples while country x has a comparative advantage in production of oranges.
I hope my answer helps you
The answer is C. Increased demand
