Which of the Following Occurs If Firms Are Able to Restrict

question 159

Multiple Choice

Which of the following occurs if firms are able to restrict output and raise price?

• A)resources are misallocated
• B)wealth is shifted from consumers to government
• C)wealth is shifted from producers to consumers
• D)P = MC
• E)P = minimum LRAC

---

Definitions:

Sensory Stimuli

External or internal events or occurrences that affect the sensory organs, leading to perception.

Functional Encoding

A process in cognitive psychology that involves the transformation of sensory input into a meaningful experience or memory.

C-major Chord

A musical chord consisting of the notes C, E, and G, known for its consonant and harmonious sound.

Hearing

The ability to perceive sound by detecting vibrations through an organ such as the ear.