As the Price of a Resource Decreases

question 85

Multiple Choice

As the price of a resource decreases,

• A) demand for that resource increases.
• B) the quantity demanded of that resource decreases.
• C) the supply of that resource increases.
• D) producers are more willing and able to hire that resource.
• E) producers are less willing and able to hire that resource.

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Definitions:

Manufacturing Operations

The processes and activities involved in the production of goods, typically in a factory setting, involving the conversion of raw materials into finished products.

Unused Capacity

Represents the difference between a company's actual production levels and its maximum potential output, indicating resources that are not being fully utilized.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision.

Differential Profit

The difference in profit from one business alternative compared to another, used to make decisions between various options.