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A fall in raw material prices increases a firm's profit margin. Which dimension of the business environment is affecting it?

Answer and explanation

Correct answer: Economic dimension

The correct answer is B, the economic dimension. Raw material prices affect a firm's input costs; when those costs fall, the profit margin can rise if other factors remain unchanged.

Related tags

Business EnvironmentEconomic DimensionInput CostsProfit MarginDimensions Of Business EnvironmentBusiness StudiesClass 12 Mcq

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