If Input Prices Increase with Industry Expansion

question 22

Multiple Choice

If input prices increase with industry expansion

• A) the short-run market supply curve will become more elastic.
• B) profits will decline.
• C) industry costs will fall.
• D) the firm's marginal cost curves will not shift.
• E) the market supply curve is not the horizontal summation of the firm's supply curves.

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Definitions:

Attributions

The process by which individuals explain the causes of behavior and events, attributing them to internal dispositions or external situations.

Favorable

Describes something that is advantageous, positive, or beneficial in nature.

Attribution Theory

A concept in psychology that explains how individuals pinpoint the causes of their own and others' behavior.

Dispositional

Pertaining to one's inherent qualities of mind and character, often used in psychology to describe a person's natural tendencies or personality traits.