Which of the Following Indicates Greater Scarcity of a Natural

question 169

Multiple Choice

Which of the following indicates greater scarcity of a natural resource?

• A)an increase in its demand
• B)a decrease in its supply
• C)an increase in its price
• D)a decrease in its stock

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Definitions:

Average Variable Cost

The total variable cost divided by the quantity of output produced.

Average Fixed Costs

The fixed costs of production divided by the quantity of output produced, illustrating how fixed costs per unit decrease as production increases.

Profit-Maximizing

The strategy or approach adopted by a company to increase its earnings to the highest possible level.

Perfectly Competitive

A market structure where there are many buyers and sellers, all of whom have full and symmetric information, and there are no barriers to entry or exit.