Assume You Are in the Business of Producing and Selling

question 30

Multiple Choice

Assume you are in the business of producing and selling t-shirts. If you could produce more t-shirts with the same input what would happen to your productivity and profits assuming the price of your t-shirts remains the same?

• A) Increase in productivity, decrease in profits
• B) Increase in productivity, increase in profits
• C) Decrease in productivity, decrease in profits
• D) Decrease in productivity, increase in profits

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Definitions:

Uniform Commercial Code

Codification of laws intended to standardize the regulation of commercial transactions in the U.S., facilitating the fair and consistent treatment of businesses and consumers.

Common Law

The body of law developed through judicial decisions, as opposed to laws enacted by legislative bodies (statutory law) or in official codes.

Statute of Frauds Rule

A legal principle that requires certain types of contracts to be in writing to be enforceable.

Sale of Real Estate

This term refers to the process of transferring ownership of property or land from one party to another.