A change in the productivity of inputs used to produce a good affects supply because Question 12 options:
A. what is considered to be a substitute or complement in production changes.
B. quality of the product changes and so consumers change their demand for the good.
C. the number of sellers changes.
D. it increases the number of sellers.
E. the costs of production change.
E. the costs of production change.
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An example of stimulus spending by the government might be:
A. increase in government purchases of new cars. B. the monthly payments a government agency makes to its employees. C. a cut in the government budget aimed at spurring private consumption. D. the FED engaging in open market sales of securities.
There are some special types of goods for which supply cannot change, irrespective of the length of time allowed for change, such as Beethoven symphonies. The price elasticity of supply for these goods is _____
a. infinite b. nonexistent c. negative d. zero e. unity
At an output level above the profit-maximizing level, for a perfectly competitive firm, a reduction in output will:
a. reduce total revenue more than total cost. b. reduce total cost more than total revenue. c. increase total revenue more than total cost. d. increase total cost more than total revenue. e. decrease total revenue and total cost by the same amount.
The production function shows the relationship between the price and the quantity of a good
a. True b. False Indicate whether the statement is true or false