A Change in an Input Price Will Alter Both Production

question 136

Multiple Choice

A change in an input price will alter both production costs and the profit-maximizing output. Thus, a decline in the price of capital will reduce production costs, increase the profit-maximizing output, and thereby increase the demand for labor. This describes the

• A)output effect.
• B)substitution effect.
• C)idea of derived demand.
• D)law of diminishing returns.

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Definitions:

Minority Women

Women who belong to socially, culturally, or ethnically less dominant groups within a society.

Sexual Harassment

Unwelcome sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature that can affect an individual's employment or work environment.

Sexual Harassment

Undesired sexual propositions, solicitations for sexual benefits, and additional forms of verbal or physical sexual harassment.

Complacency

A feeling of self-satisfaction accompanied by a lack of awareness of potential dangers or deficiencies.