A Profit-Maximizing fiRm Will Increase Its Output If _____

question 26

Multiple Choice

A profit-maximizing firm will increase its output if _____.

• A) the demand for a substitute good increases
• B) its revenues increase as it expands to wider markets
• C) the government imposes a tariff on a raw material that it imports
• D) labour unions force the management to increase wages

Understand the significance of divergent thinking in creativity and how it differs from convergent thinking.

Learn about the factors that support or hinder creativity, including intrinsic motivation and environmental influences.

Appreciate the role of intuition and implicit knowledge in our learning and decision-making processes.

Understand how bond prices are influenced by changes in interest rates.

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Definitions:

Profit

The right to go onto someone’s land and take part of the land or a product of it away from the land.

S Corporation

A special designation granted by the IRS to small businesses that allows them to pass corporate income, credits, and deductions through to shareholders, avoiding double taxation.

Taxed

Subjected to a financial charge or levy by a governmental organization in order to fund various public expenditures.

Partnership

A business arrangement recognized by law involving two or more partners who collectively oversee the business and divide its profits.