Assume that a firm with the market power in output market wishes to grow and that hiring more workers needs it to increase salaries 8 percent for all the workers. The output prices will most likely: (i) Increase 8 percent to cover the wage rise. (ii) Increase less than 8% as wages are only a part of the costs. (iii) Increase more than 8% as each of the employee works with less capital. (iv) Drop 8% as of technological advances.
Find out the right answer from the above options.