Some Producers Are Chatting

question 152

Multiple Choice

Some producers are chatting.Which one of the following quotations refers to a movement along the supply curve?

• A)"Wage increases have forced us to raise our prices."
• B)"We anticipate a big increase in demand.Our product price should rise, so we are planning for an increase in output."
• C)"New competitors in the industry are causing prices to fall."
• D)"Raw material prices have sky- rocketed; we will have to pass the cost on to our customers."
• E)"Our new, sophisticated equipment will enable us to undercut our competitors."

---

Definitions:

Plant Size

Refers to the scale or capacity of a manufacturing facility or industrial plant, affecting its potential output levels and efficiency.

Output Units

The measured quantity of goods or services produced by a firm or industry.

Long Run

A period of time in economics during which all factors of production and costs are variable, allowing for full industry adjustment to changes.

Extensive Range

A wide scope or variety of something, covering a broad spectrum.