Which of the Following Would Generally Cause Firms to Expand

question 187

Multiple Choice

Which of the following would generally cause firms to expand output in the short run?

• A) a proportional increase in the prices of goods and services and the costs of producing them
• B) higher profit margins as the result of an unexpected increase in the prices of goods and services
• C) an unexpected reduction in aggregate demand
• D) an increase in wages and the prices of other resources

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Definitions:

Motivated Workers

Individuals who are driven to perform tasks, engage in activities, or achieve goals due to internal or external factors.

Emotional Factors

Elements that influence feelings, mood, and responses, affecting decision-making and behavior.

Physiological Factors

Physical and biological elements that affect the functions and activities of living organisms.

Social Factors

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