A Factor-Price Effect Occurs When Increases in the Industry's Output

question 56

Multiple Choice

A factor-price effect occurs when increases in the industry's output

• A) attract new firms to the industry.
• B) raise the cost of a variable input.
• C) cause new subindustries to be developed.
• D) result in lower prices for consumers.

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Definitions:

WRAT4

The Wide Range Achievement Test, 4th edition, an academic skills assessment measuring reading, spelling, and arithmetic skills.

Reading Comprehension

The ability to understand, interpret, and derive meaning from written language.

Effects

Outcomes or changes that result from a particular cause or intervention.

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Professionals within educational institutions focused on supporting students' academic, career, personal, and social development.