When There Are Higher Prices Due to Greater Effort Needed

question 46

Short Answer

When there are higher prices due to greater effort needed to produce the same product today it is called ____________________ inflation.

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Definitions:

Units of Output

A measure of production or productivity, essentially counting the quantity of goods or services produced.

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or output.

Purely Competitive Seller

A seller in a market structure characterized by many sellers offering identical products, where no single seller can influence the market price.

Total Fixed Cost

The sum of all costs that remain constant regardless of the level of production or output in the short term.