Economics Question

Reply Tue 10 Feb, 2015 08:38 pm
Fisher Price pays an annual licensing fee of $25,000 for the rights to use the children’s storybook character “Chuck Truck” in their production of Chuck Truck toys. Ceteris Paribas, which would have the bigger effect on consumers of Fischer Price Chuck Truck toys: an increase in Fisher Price manufacturing employees’ wages or an increase in the licensing fee to use Chuck Truck? Explain your answer. Assume only Short Run results. Hint: Consider the types of costs a firm faces.
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