Which of the following is true?
a. Sellers are willing to supply more of a good or service at every price after costs have increased.
b. A fall in the price of a product leads to an increase in the profits earned by sellers
c. A fall in the cost of production leads to a downward movement along the supply curve of a product.
d. Sellers are willing to supply more of a good or service at every price after costs have decreased.
e. An increase in the price of a product leads to a fall in the profits earned by sellers.
d
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When the production possibilities frontier is bowed outwards, the opportunity cost of producing more of one good
A) increases in terms of the amount foregone of the other good. B) decreases in terms of the amount foregone of the other good. C) remains constant. D) cannot be determined.
Mr. Shades Sunglasses promotes its 'buy one, get one half price' offer in which customers who purchase one pair of sunglasses can purchase a second pair at half price. This is an example of ________ and is ________.
A) price discrimination; always illegal per se B) conditional sales; always illegal per se C) price discrimination; only illegal if the practice substantially lessens competition or tends to create a monopoly D) conditional sales; only illegal if the practice substantially lessens competition or tends to create a monopoly
If government increased Social Security benefits and decreased the salaries of government workers by the same amount, which of the following is the expected immediate effect? a. An increase in the budget deficit and government purchases of goods and services
b. An increase in the budget deficit, but no change in government purchases of goods and services. c. An increase in the budget deficit and a decrease in government purchases of goods and services. d. No change in the budget deficit because there has been no change in government purchases of goods and services. e. No change in the budget deficit because government purchases of goods and services have decreased by the same amount as transfer payments have increased.
A firm might issue stock to
A. to increase its debt. B. decrease the number of owners. C. employ more people. D. finance a capital project.