Assume that a firm with market power in the output market wants to develop and that hiring more workers needs it to raise salaries 8 percent for all the workers. Output prices will most likely: (i) Increase 8 percent to cover the wage rise. (ii) Increase less than 8 percent as wages are only a part of costs. (iii) Increase more than 8 percent as each employee works with very less capital. (iv) Drop 8 percent as of technological growth.
Can someone please help me in finding out the accurate answer from the above options.