In the Short Run, Firms Expand Their Production When the Price

question 64

Multiple Choice

In the short run, firms expand their production when the price level rises because

• A) the higher prices allow the firm to hire more workers by offering higher wages, thereby increasing productivity and profits.
• B) each firm must keep its production up to the level of its rivals, and some firms will expand production as the price level increases.
• C) firms can increase their profits by increasing their maintenance.
• D) the money wage rate remains constant so the higher prices for their product makes it profitable for firms to expand production.

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Definitions:

Translocated

The process of moving or transferring something from one location to another, often referring to the movement of genetic material within or between organisms.

Xylem Sap

The water and dissolved nutrients conducted throughout a plant by the xylem tissue.

Cohesion

The force that holds molecules of the same substance together, playing a crucial role in water transport in plants.

Water Molecules

The smallest unit of water (H2O), consisting of two hydrogen atoms bonded to one oxygen atom, essential for life and a major component of cells and ecosystems.