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:

Endocrine Activity

The various functions of the glands in the endocrine system that secrete hormones directly into the bloodstream.

Internal Locus

A psychological concept where an individual believes they can control their life and outcomes.

Control

The power to influence or direct people's behavior or the course of events.

Immune System

The body's defense mechanism against infections, diseases, and foreign substances, comprising various organs, cells, and proteins.