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:

Cultural Influences

The effects that the customs, beliefs, practices, and social behavior of people within a specific culture have on their members' actions and perceptions.

Biological Influences

Factors related to genetics, brain chemistry, and physical health that affect an individual’s behavior and mental processes.

Personality Differences

Variations among individuals in terms of patterns of thinking, feeling, and behaving.

Introspection

The examination or observation of one's own mental and emotional processes.