A Low-Cost Producer Focuses on

question 11

Multiple Choice

A low-cost producer focuses on

• A)providing goods and services at highest possible costs and selling at high prices.
• B)providing goods and services at lowest possible costs and selling at high prices.
• C)providing goods and services at highest possible costs and selling at low prices.
• D)providing goods and services at lowest possible costs and selling at low prices.

---

Definitions:

Excise Tax

A tax levied on specific goods, services, or transactions, often imposed on items such as alcohol, tobacco, and gasoline.

Price-Elastic Demand

The characteristic of demand for a good indicating that a change in price results in a relatively larger change in the quantity demanded.

Excise Tax

A tax on the sale or use of specific products or transactions, typically integrated directly into the cost of the good.

Price Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, often influenced by the availability of substitutes.