What Is the Usual Response of Firm to an Increase

question 64

Multiple Choice

What is the usual response of firm to an increase in the price of what they sell?

• A)An increase in output.
• B)An increase in hiring factors of production.
• C)An increase in the profit level of the firm.
• D)An increase in employment at the firm.
• E)All of the above.

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Definitions:

Hierarchical Organizational Structures

Organizational frameworks where entities are ranked according to levels of authority.

Increased Speed

A higher rate of movement or operation.

Information Scarcity

A situation where necessary or desired information is limited or hard to obtain.

Decision Making Process

A series of steps taken by an individual or a group to identify and evaluate options and make a choice among them.