Suppose That Techno TV Produces LCD Televisions

question 33

Multiple Choice

Suppose that Techno TV produces LCD televisions.At a price of $2,000 per television, Techno determines that its optimal output is 3,000 television sets per week.If prices are sticky and fears of a recession reduce demand for LCD televisions, we would expect Techno to

• A)reduce output in the long run.
• B)reduce output in the short run.
• C)raise prices in the short run to compensate for lost revenue.
• D)lower prices in the short run to offset the reduced demand.

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Definitions:

Express False Statement

An explicitly communicated untrue assertion, which can be a basis for a claim of deceit or fraud.

Mutual Mistake

An error shared by all parties to a contract, concerning a basic assumption on which the contract was based, that has a material effect on the agreed performance.

Standard-Size

Referring to items or products that are made to a specific, uniform set of dimensions or measurements to ensure consistency and compatibility.

Legal Assent

A mutual agreement under contract law wherein all parties involved acknowledge and adhere to the terms of a contract, making it legally binding.