When the marginal propensity to consume (MPC) increases

Using the CPI to compensate workers for inflation is appropriate because, in the face of a change in relative prices, people should be allowed to purchase the same bundle as they did before the price changes

Indicate whether the statement is true or false

Which of the following is an example of an economic trade-off that a firm has to make?

A) whether it is cheaper to produce with more machines or with more workers B) deciding why consumers want its products C) whether or not consumers will buy its products D) deciding what profit margin it desires for its products