If the Price of a Fixed Factor of Production Increases

question 46

Multiple Choice

If the price of a fixed factor of production increases by 50 percent, what effect would this have on the marginal-cost schedule facing a firm?

• A)None, because fixed costs do not affect marginal cost.
• B)Marginal cost would increase by 50 percent.
• C)Marginal cost would increase by less than 50 percent.
• D)Marginal cost would increase by more than 50 percent.

---

Definitions:

Evaporation

The process by which water changes from a liquid to a vapor or gas, often contributing to the water cycle.

Homeostasis

The process by which living organisms regulate their internal environment to maintain a stable, constant condition.

Biological Molecules

Organic molecules essential for life, including carbohydrates, lipids, proteins, and nucleic acids.

Buffers

Substances that minimize changes in pH by absorbing or releasing hydrogen ions, thus maintaining a stable environment in solutions, especially in biological systems.