Consider the Basic AD/AS Model

question 71

Multiple Choice

Consider the basic AD/AS model.If their unit costs rise as output increases,price-taking firms will be prepared to produce ________ only if ________.

• A)more; prices decrease
• B)more; the economy is in equilibrium
• C)their current output; prices increase
• D)less; prices increase
• E)more; prices increase

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Definitions:

Operation Indicated

The specific mathematical procedure or action suggested by a problem or equation.

Collect Like Terms

In algebra, to combine terms that have the same variables raised to the same power.

Simplify

To make (something) simpler or easier to understand or do.

Expression

In mathematics, a combination of symbols that represent a quantity or a relationship between quantities.