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cocoabean, I can't agree with you but am open to discussion. Here's how I read (B). [Under PRP contracts] costs [other than labor costs], [such as plant, machinery, and
energy], make up an increased proportion of the total cost of each unit of output. Here costs refer to cost of plant, machinery and etc. If worker productivity increases, labor costs will decrease and the proportion of labor costs to total costs will go down too. So "if other costs remain stable", the proportion of "other costs" "make up an increased proportion of the total cost of each unit of output. ". Here "other costs" refer to costs in plant, machinery, and energy... |