When the Prices of All Inputs Increase by a Proportionate

question 88

Multiple Choice

When the prices of all inputs increase by a proportionate amount:

• A)the firm's total cost curve will remain unchanged since the cost-minimizing combination of inputs is unchanged.
• B)the firm's total cost curve may rotate upward or may leave the long-run total cost curve unchanged.
• C)will always rotate the long-run total cost curve upward.
• D)could actually rotate the long-run total cost downward if the firm chooses to produce a lower level of output.

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Definitions:

Internal Promotions

The practice of filling vacancies within an organization by promoting existing employees rather than hiring externally.

Employee Stock Plans

Programs allowing employees to purchase or receive shares in the company they work for, often at advantageous conditions.

Classical Management

A theory of management that emphasizes rationality, efficiency, and a hierarchical structure of control, typically associated with the early 20th century.

Profit-Sharing Plans

A form of employee reward system where a company shares a part of its profits with its employees as a motivational and loyalty-enhancing tool.