As the price of flour (an input in the production of cookies) increases, firms that produce cookies will:
A. increase the quantity of cookies supplied.
B. decrease the quantity of cookies supplied.
C. decrease the supply of cookies.
D. increase the supply of cookies.
Answer: C
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If a seller's marginal cost is $25, and the price at which the good is sold is $15, the producer surplus is ________
A) -$10 B) $10 C) $15 D) $25
The law of diminishing marginal utility states that
A) the extra satisfaction from consuming a good decreases as more of a good is consumed, other things constant. B) when the extra satisfaction from consuming a good becomes negative, total utility starts falling, other things constant. C) eventually total utility falls as more of a good is consumed, other things constant. D) the extra satisfaction from consuming a good increases slowly as more of a good is consumed, other things constant.