An Increase in Consumer Confidence Will

question 147

Multiple Choice

An increase in consumer confidence will:

• A) increase both prices and output in the short run.
• B) decrease prices in the long run, but output will remain the same.
• C) decrease both prices and output in the short run.
• D) increase output in the long run, but prices will remain the same.

Learn about the cultural differences in conformity and the factors that influence it.

Understand the basic concepts of corporate acquisitions, mergers, and takeovers.

Identify and differentiate among various types of acquisitions (e.g., horizontal, vertical, conglomerate).

Recognize the strategies and mechanisms companies use to defend against hostile takeovers.

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Definitions:

Fixed Manufacturing Costs

Expenses that do not change with the level of production, such as rent, salaries of permanent employees, and depreciation of factory equipment.

Markup

The extra charge added to the purchasing cost of items to encompass both overhead expenses and profit, setting the sale price.

Contribution Margin

The excess of sales over variable costs; the excess of manufacturing margin over variable selling and administrative expenses.

Bottleneck Hour

A term used in production and manufacturing to describe the hour or period where the flow of processes slows down due to a limitation in output capabilities, impacting overall productivity.