Which of the following is a production decision?
A. Whether to share information with a competitor.
B. Whether to enter or exit an industry.
C. Whether to increase or decrease plant capacity.
D. Whether to increase or decrease output.
Answer: D
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Industry Y is a perfectly competitive industry. Assume that as a result of changes in other markets there is a twenty percent increase in the price of variable inputs used by firms in industry Y
After all adjustments have taken place, we would expect the equilibrium price in industry Y to: A) decrease and the number of firms to increase. B) decrease and the number of firms to decrease. C) increase and the number of firms to increase. D) increase and the number of firms to decrease.
Sources of stress include all but which of the following:
a. Hurricanes, tornadoes, floods and other such natural events b. Angry family members and friends c. Clutter, mental and physical d. All of the above are potential sources of stress
According to the graph shown, the area ABC represents consumer surplus in an economy with:
This graph demonstrates the domestic demand and supply for a good, as well as a tariff and the world price for that good.
A. free trade.
B. autarky.
C. a tariff being imposed on trade.
D. None of these is true.
An effective price floor on wheat will:
A. force otherwise profitable farmers out of business. B. result in a shortage of wheat. C. clear the market for wheat. D. result in a surplus of wheat.