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3 years ago

Suppose the world price of cotton falls substantially.

Business

1 answer:

Crazy boy [7]3 years ago

4 0

Answer:

(A) Decrease

(B) Increase

Explanation:

An decrease in the price of cotton will cause all the cotton producing firms to put Strategies in place that will help them to cut the costs of operations which will include the REDUCTION OF THE MANPOWER OR WORKFORCE.

When the price of raw materials or inputs used in the production processes of a given product reduces, IT WILL ENABLE THE COMPANY TO WANT TO INCREASE ITS PRODUCTION CAPACITY WHICH WILL ALSO INVOLVED AN INCREASE IN MANPOWER OR WORKFORCE.

Frictional Unemployment is a type of Unemployment caused by seasonal changes such as reduced demand, reduced price of products etc or people changing jobs due to certain factors.

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