When the price level rises less than expected, a firm with a sticky price will sell its output at a price that is
a) more than the firm desires and increase its production.
b) more than the firm desires and decrease its production.
c) less than the firm desires and increase its production.
d) less than the firm desires and decrease its production.
Ans: b) more than the firm desires and decrease its production.
Economics
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In the equation for the production function Y/L represents
a. productivity. b. output. c. the availability of natural resources. d. the amount of human capital.
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In a command economy, how many people decide what will be produced?
a. a small handful of government officials b. one overall leader c. millions of consumers and producers d. a few thousand corporate managers
Economics