What is the usual response of firm to an increase in the price of what they sell?
a. An increase in output.
b. An increase in hiring factors of production.
c. An increase in the profit level of the firm.
d. An increase in employment at the firm.
e. All of the above.
e
You might also like to view...
The figure above shows Sam's budget line. Which of the following would result in Sam's budget line rotating inward and not changing its vertical intercept?
A) a decline in his preference for coffee B) a fall in the price of a gallon of gasoline C) a decrease in Sam's income D) an increase in the price of a pound of coffee
The more specialized labor becomes, the:
a. less likely it is that a double coincidence of wants will exist, and the less likely it is that monetary exchange will develop. b. less likely it is that a double coincidence of wants will exist, and the more likely it is that monetary exchange will develop. c. more likely it is that a double coincidence of wants will exist, and the less likely it is that monetary exchange will develop. d. more likely it is that a double coincidence of wants will exist, and the more likely it is that monetary exchange will develop. e. more likely it is that the individual is producing only what he or she wants to consume.