In the Above Figure, the Movement from Point a to Point

question 71

Multiple Choice

In the above figure, the movement from point a to point b reflects

• A) an increase in the number of people who eat pizza.
• B) a decrease in the price of pizza.
• C) an increase in the demand for pizza.
• D) an increase in the price of the tomato sauce used to produce pizza.
• E) a decrease in the number of firms producing pizza.

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Definitions:

Motor Manufacturing Technology

The techniques, machinery, and processes used in the production of motors and engines.

Marginal Revenue

The additional revenue gained from selling one more unit of a good or service.

Marginal Product

The additional output resulting from employing one more unit of a particular input, keeping other inputs constant.

Optimal Employment

The level of employment where the marginal product of labor equals the real wage rate, maximizing efficiency and productivity in the use of labor resources.