What Is the Usual Response of Firm to an Increase

question 81

Multiple Choice

What is the usual response of firm to an increase in the price of what they sell?

• A)An increase in output
• B)An increase in hiring factors of production
• C)An increase in the profit level of the firm
• D)An increase in employment at the firm
• E)All of these responses are correct.

---

Definitions:

Objective Realities

External factors and phenomena that exist independently of individual thoughts, feelings, and beliefs.

Subjective Feelings

Personal, interior experiences of emotions that are often difficult to measure objectively.

Achievement Need

The psychological drive to excel, achieve in terms of set standards, and strive for success.

Situational Determinants

Situational determinants are external factors that influence an individual's behavior, varying depending on the context or environment.