One of the least important productive inputs in almost all companies is labor and it is unlikely that differential low cost access to labor can give a firm a cost advantage.

Question

Quizplus · Accepted Answer

This statement is false. Labor is a significant input in many industries and access to low-cost labor can provide firms with a cost advantage. In fact, this is one of the key reasons why many companies outsource their production or move their operations to countries with lower labor costs. However, it is not the only factor that determines a firm's cost advantage and other inputs such as technology, capital, and raw materials also play important roles.

One of the Least Important Productive Inputs in Almost All