Which of the Following Is Evidence of a Shortage of Macadamias

question 30

Multiple Choice

Which of the following is evidence of a shortage of macadamias?

• A)Firms lower the price of macadamias.
• B)The price of cashews is lowered in order to make up for the macadamia shortage.
• C)The equilibrium price of macadamias falls due to a decrease in demand.
• D)The quantity demanded of macadamias is greater than the quantity supplied.

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Definitions:

ATC

Another term for Average Total Cost, it represents the per unit cost of production, calculated by dividing total production cost by the quantity of goods produced.

Profit-Maximizing

A firm's objective of adjusting outputs and pricing to achieve the highest possible profit.

Demand Schedule

A table that shows the quantity of a good or service that consumers are willing to buy at each price point.

Total Cost

Represents the complete cost of production, including both fixed and variable costs, for producing a certain amount of goods or services.