If a Product Is Manufactured Under Conditions of Constant Cost

question 110

Multiple Choice

If a product is manufactured under conditions of constant cost, an increase in the demand for the product will increase

• A) both equilibrium quantity and equilibrium price in the long run.
• B) equilibrium price, but equilibrium quantity will be unchanged in the long run.
• C) equilibrium price but reduce equilibrium quantity in the long run.
• D) equilibrium quantity, but equilibrium price will be unchanged in the long run.

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Definitions:

Downsizing Decision

An organizational strategy to reduce workforce size, operational costs, and complexity by eliminating positions or departments.

Outsourcing

The practice of contracting out certain business functions or processes to a third-party provider.

Reabsorbing

A process in which substances are taken back into the body or a system after being emitted or excreted.

Restructured Organization

A process where a company changes its organizational structure to improve efficiency and adapt to new business realities or strategies.