Which Factor Is MOST Likely to Shift the Supply of Milk

question 133

Multiple Choice

Which factor is MOST likely to shift the supply of milk to the right?

• A)a tax on each gallon of milk produced
• B)an increase in household income,milk being a normal good
• C)a decrease in the price of feed given to dairy cows
• D)the bankruptcy of many small dairy farms

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Definitions:

Total-Cost Approach

A pricing strategy that accounts for all possible costs incurred to bring a product to market, including production, marketing, and distribution costs.

Discount Rate

The rate of interest known as the discount rate is employed in discounted cash flow analysis to figure out the current value of cash flows expected in the future.

Working Capital

A measure of a firm's ability to fulfill short-term financial obligations, underscored by its liquid assets minus its due debts.

Salvage Value

The appraised remaining value of an asset at the point of its life end.