In the Long Run, _____ Is Determined by Labour Productivity

question 88

Multiple Choice

In the long run, _____ is determined by labour productivity and the output of a ?rm.

• A) the average income level of the consumer
• B) demand elasticity
• C) the consumer's willingness to pay
• D) returns to scale

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Definitions:

Goods

Tangible items that satisfy human wants or needs and are available for purchase.

Maximizing Utility

The economic principle that individuals seek to obtain the greatest satisfaction or utility from their consumption choices within their income constraints.

Utility

Refers to the satisfaction or benefit that consumers receive from consuming goods or services.

Spending

The act of using money to purchase goods or services.