A Relative Price Is the

question 390

Multiple Choice

A relative price is the

• A) difference between one money price and another.
• B) ratio of one money price to another.
• C) slope of the supply curve.
• D) slope of the demand curve.

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Definitions:

Fixed Manufacturing

Costs associated with manufacturing that remain constant regardless of the level of production, such as salaries and lease payments.

Variable Manufacturing

Costs that vary directly with the level of production, such as raw materials or labor directly involved in making products.

Labour Cost

The total expenditure incurred by employers to compensate their employees, including wages, benefits, and payroll taxes.

Labour Rate

The amount of money that is paid for a specific quantity of labor, often referred to as the wage rate.