asked 54.0k views
3 votes
What effect will be increase in electricity have on manufacturing industry's output.

1 Answer

3 votes
An increase in electricity price will translate into an increase in operational costs for a manufacturing industry. An increase in the operational costs will in turn let the company sacrifice a few costs in order to have a stable cash flow. Cost cutting might happen. With respect to the industry's output, it is possible that productivity will decrease in relation to the increase in electricity price since producing more will mean more electricity to be used.
answered
User Smartin
by
8.8k points

No related questions found

Welcome to Qamnty — a place to ask, share, and grow together. Join our community and get real answers from real people.