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The basic relationship between the cost of production, and the market price of any commodity…

The basic relationship between the cost of production, and the market price of any commodity in the short run is that the market price?
  • A.
    always reflects the cost of labour
  • B.
    reflects the variable, but not the fixed cost of production
  • C.
    does not rise above variable costs
  • D.
    is determined by the cost of production and the current rate of inflation
Correct Answer: Option B
Explanation