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The prices of raw materials and the cost of borrowing both increased, so a company reduced its production budget. Which dimension of the business environment mainly explains this decision?

Answer and explanation

Correct answer: Economic dimension

The correct answer is C, the economic dimension. Raw-material prices and borrowing costs affect a firm's costs and available funds, so they are economic factors that can influence its production budget.

Related tags

Business EnvironmentEconomic DimensionBusiness CostsDimensions Of Business EnvironmentBusiness StudiesClass 12 Mcq

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