When Production of a Good Can Be Expanded Without Significantly

question 221

Multiple Choice

When production of a good can be expanded without significantly increasing the overall demand for its inputs:

• A) supply for this good will tend to be more inelastic.
• B) supply for this good will tend to be more elastic.
• C) price for the good will be constant.
• D) the elasticity of supply of the product will equal the elasticity of supply of the inputs.

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Definitions:

Commission Payment Plans

A method of remuneration where employees or agents are paid based on the sales they generate, usually as a percentage of the sale price.

Monthly Salary

Regular payment from an employer to an employee, typically spread over a month, for performing agreed-upon professional tasks.

Commission

A fee or percentage of a transaction value paid to agents or employees for conducting a piece of business or a service.

Sales

The exchange of goods or services for money, representing the primary source of revenue for most businesses.