In the Short Run, Firms Expand Their Production When the Price

question 123

Multiple Choice

In the short run, firms expand their production when the price level rises because

• A) the money wage rate remains constant so the higher prices for their products makes it profitable for firms to expand production.
• B) each firm must keep its production up to the level of its rivals, and some firms will expand production as the price level increases.
• C) the higher prices allow the firm to hire more workers by offering higher wages, thereby increasing productivity and profits.
• D) firms can increase their profits by increasing their maintenance.

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Definitions:

Project Head Start

A program in the United States that provides comprehensive early childhood education, health, nutrition, and parent involvement services to low-income children and their families.

Functionally Asymmetrical

Pertaining to the uneven distribution or activity level of functions across different parts of an entity, particularly in biological systems such as the human brain.

Left Hemisphere

The left side of the human brain, which is often associated with analytical tasks, language processing, and logical reasoning.

Right-handers

Refers to individuals who predominantly use their right hand for activities such as writing and manual tasks.