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What effect does a rise in the cost of machinery or raw materials have on the cost of a good?
What effect does a rise in the cost of machinery or raw materials have on the cost of a good?
Answer
It's a chain reaction.
If the cost of manufacturing increases the cost of goods will increase to keep up with the demand and also to get a reasonable amount of profit.
So if the cost rises in producing the goods so will the goods itself.
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Virtual Teaching Assistant: Colleen R.
Question Level: Basic
Karma: Free
Upload Date: 5/31/2017
This 40 words question was answered by Colleen R. on StudySoup on 5/31/2017. The question contains content related to Business Since its upload, it has received 396 views.