In the Short Run, an Increase in the Average Price

question 46

Multiple Choice

In the short run, an increase in the average price level causes

• A) profits to fall, and thus total production to decline.
• B) profits to rise, and thus total production to increase.
• C) profits to rise, and thus total production to decline.
• D) input costs to fall, and thus total production to rise.
• E) input costs to fall, and thus total production to decline.

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Definitions:

Flash Drive

A flash drive is a small, portable storage device that uses flash memory and is typically used for the transfer and storage of data.

Byte

Eight binary digits (bits).

Bits Of Data

The smallest units of data in computing, representing a binary value of either 0 or 1.

Expansion Hub

A device that allows multiple peripherals to connect to a single port on a computer or other device, expanding its connectivity.