An Increase in the Quantity of Output Will Cause the Cost

question 83

Multiple Choice

An increase in the quantity of output will cause the cost minimizing quantity of an input to go ________ if the input is a normal input and will cause the cost minimizing quantity of the input to go _________ if the input is an inferior input.

• A)up; up
• B)up; down
• C)down; up
• D)down; down

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Definitions:

Exhaustive Exclusions

A principle where all possible alternatives or options are considered and then systematically rejected or excluded until a conclusion is reached.

Consistent Principle

A rule or concept that does not contradict itself and is coherent with other principles within the same theoretical framework.

Pentagonal

Having five angles and five sides; specifically referring to geometrical shapes.

Round

Characterizes an object with a circular shape or a process of rounding numbers to a specified degree of accuracy.