For a Price Taker,if the Price of a Fixed Factor

question 46

Multiple Choice

For a price taker,if the price of a fixed factor of production increases,

• A) total cost is unchanged.
• B) price rises.
• C) marginal cost is unchanged.
• D) marginal cost increases.
• E) the profit-maximizing level of output falls.

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Definitions:

Modern Economies

Economic systems that are characterized by complex financial markets, significant levels of investment in technology, and interconnected global trade relationships.

Specialized Skills

Abilities or expertise in specific fields that individuals acquire through education, training, or practical experience.

Specialization and Exchange

The economic strategy where individuals or groups focus on the production of limited kinds of goods to trade for other goods.

Net Exports

The value of a country's total exports minus its total imports; a positive number indicates a trade surplus, while a negative number indicates a trade deficit.