Firm A has a higher labor cost-total cost ratio than Firm B.If both firms employ the same type of labor,and the wage rate rises $1,then Firm A's product price will most likely ____________ than Firm B's product price.

Question

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Firm A has a higher proportion of labor costs in its total costs, so a $1 increase in wage rate will have a larger impact on its total costs, leading to a greater increase in its product price compared to Firm B.

Firm a Has a Higher Labor Cost-Total Cost Ratio Than