What effect will be increase in electricity have on manufacturing industry's output.

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Dominik Shannon

English

4 February, 05:29

What effect will be increase in electricity have on manufacturing industry's output.

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Addisyn Stokes · Answer 1

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.