A Reduction in Production Costs Will Not Result in Which

question 26

Multiple Choice

A reduction in production costs will not result in which of the following?

• A) rightward shift of the supply curve.
• B) increase in supply.
• C) greater willingness and ability of producers to supply a larger quantity at any given price.
• D) greater willingness and ability of consumers to demand a larger quantity at any given price.

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Definitions:

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenue.

Financing Activities

Activities that result in changes in the size and composition of the equity capital or borrowings of a company.

Long-Term Debt

A financial obligation that is due for repayment in more than one year's time.

Ten-Year Treasury Note

A government debt security issued by the U.S. Treasury with a ten-year maturity, which pays interest to the holder every six months.