In general, when the price of a fixed factor of production increases:
A. the profit-maximizing price falls.
B. marginal cost increases.
C. the profit-maximizing level of output increases.
D. the profit-maximizing level of output does not change.
Answer: D
You might also like to view...
Describe the field of economics known as microeconomics
What will be an ideal response?
At the point where the demand and supply curves for a product intersect:
A. the selling price and the buying price need not be equal. B. the market may, or may not, be in equilibrium. C. the quantity that consumers want to purchase and the amount producers choose to sell are the same. D. either a shortage or a surplus of the product might exist, depending on the degree of competition.
Which of the following is not a reason why unionized firms can successfully compete with nonunionized firms?
A. Unionized firms are legally protected from price competition with nonunionized firms. B. Employee morale may be higher at unionized firms, so workers are more productive. C. Labor turnover is lower at unionized firms, so unionized firms have lower hiring costs. D. Communication between management and workers is better at unionized firms.
A point outside the production possibilities curve represents a combination of goods that is:
A. inefficient. B. efficient. C. unattainable. D. attainable.