An Increase in Supply Is Shown by

question 39

Multiple Choice

An increase in supply is shown by

• A)a movement down along the supply curve.
• B)a movement up along the supply curve.
• C)a rightward shift of the supply curve.
• D)a leftward shift of the supply curve.
• E)an initial movement up and then down along the same supply curve.

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Definitions:

Production Function

A mathematical representation of the relationship between inputs (like labor and capital) and the maximum output possible.

Profit Maximizing

The process or strategy employed by firms to increase their profits to the highest possible level by adjusting output, pricing, or other operational decisions.

Price Of Output

The selling price of goods or services produced by a company.

Long-Run Equilibrium

A state in economics where all factors of production and costs are variable, leading to a situation where firms are earning normal profits and no new firms enter or exit the industry.