Scarcity Implies That

question 157

Multiple Choice

Scarcity implies that

• A) consumers are too poor to afford the goods and services available.
• B) consumers are willing to purchase more of a good at the current price than suppliers are willing to produce.
• C) it is impossible to completely fulfill the desire for goods and services with the limited resources available.
• D) consumers would be willing to buy the same quantity of a good at a higher price.

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Definitions:

Purely Competitive Conditions

A market scenario where numerous small suppliers offer identical products, resulting in no single supplier having any market control.

Marginal Product

The additional output that is produced by adding one more unit of a particular input while keeping other inputs constant.

Minimizing Costs

A strategy or process aimed at reducing expenses in production or operations to increase profitability.

Substitute Resources

Productive inputs that can be used instead of other inputs in the production process; resources for which an increase in the price of one leads to an increase in the demand for the other.