The "law of supply" states that, other things remaining the same, firms produce
A) more of a good the less it costs to produce it.
B) less of a good the more it costs to produce it.
C) more of a good the higher its price.
D) less of a good as the required resources become scarcer.
C
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When a firm uses a form of quantity discrimination it is the high quantity purchasers that generate most profit
Indicate whether the statement is true or false
When there is an excess supply of a product in an unregulated market, the tendency is for
A. price to rise. B. quantity demanded to decrease. C. price to decrease. D. quantity supplied to increase.
When the Fed pursues a monetary policy of low interest rates, the exchange rate between the dollar and other currencies will tend to ________, generally making it ________ for foreign firms to sell their goods in the United States
A) rise; easier B) rise; more difficult C) fall; easier D) fall; more difficult
The interest-rate-based transmission mechanism assumes that the Fed can stimulate investment by
A) selling bonds. B) buying bonds. C) raising the discount rate relative to the federal funds rate. D) raising the required reserve ratio.