MCQ Economics paper 1 Q26

[Nobody]

what is not a possible cause of cost-push inflation
A-increase in firms profit margins
B-increase in supply of money
C-increase in trade union power
D-increase in world oil prices

the answer is B, but why is it not A..profit is not part of a cost

 

[Xenon]

profit is the reward of entrepreneur which is also a factor of production.
money supply has its own cause of inflation as given by the quantity theory of money.