Disinflation May Cause

question 60

Multiple Choice

Disinflation may cause

• A) an increase in the value of gold, silver, and gems.
• B) a reduced required return demanded by investors on financial assets.
• C) additional profits through falling inventory costs.
• D) None of the other answers are correct

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Definitions:

Cost Function

Function relating cost of production to level of output and other variables that the firm can control.

Profit Sharing

A company policy or agreement that distributes a portion of its profits among employees, typically based on their performance or salary.

Total Cost Function

A mathematical representation of how a firm's total cost varies with its level of output.

Optimal Output Level

The quantity of production that results in the highest possible profit for the firm, considering the cost of resources and the revenue from sales.