If labour continues to be used intensively despite high battery prices, the most logical explanation is:

CA Foundation · Business Economics · MTP · September 2026
If labour continues to be used intensively despite high battery prices, the most logical explanation is:
(A) A. labour is relatively cheaper than capital
(B) B. capital is freely available
(C) C. the economy is socialist
(D) D. producers ignore cost minimization

Suggested Answer and Working Notes:

Correct Answer: Option (A)

A. labour is relatively cheaper than capital

Topics: Theory of Production and Cost

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