A firm's cost of production is determined by all of the following except
A)the technology used to produce its output.
B)the productivity of its workers.
C)the cost of raw material used in production.
D)the amount of corporate taxes it must pay on its profit.

Question

Quizplus · Accepted Answer

The amount of corporate taxes a firm must pay on its profit affects its profitability and return on investment, but it does not directly impact the cost of production. The cost of production is primarily determined by the technology used, the productivity of the workers, and the cost of raw materials used in production.

A Firm's Cost of Production Is Determined by All of the Following