If firms can easily substitute another input for the one


Which of the following statements is not correct? a. If firms can easily substitute another input for the one that has increased in price, there may be little increase in costs. b. If an input constitutes a large fraction of total costs, an increase in its price will raise costs significantly. c. If firms find it difficult or impossible to substitute for the input that has become more costly, then costs may increase rapidly. d. None of the above. Explain.

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Business Economics: If firms can easily substitute another input for the one
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