Why Are Producers Willing and Able to Offer Greater Quantities

question 49

Multiple Choice

Why are producers willing and able to offer greater quantities for sale at higher prices?  

• A) because they have the incentive to pay the increasing opportunity cost of resources to attract them from alternative uses 
• B) because they will decrease their profits by expanding production at higher prices 
• C) because lower prices attract new firms, which have higher costs of production 
• D) because they hire superior quality, higher-priced resources as production expands

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Definitions:

Net Income

Net income is the total revenue minus total expenses of a business, showing the company's profit during a specific period.

Correcting Entries

Journal entries made to amend previously recorded transactions that were incorrect or incomplete.

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell it to customers, and collect the cash from these sales.

Fiscal Year

A twelve-month period used for accounting purposes and preparing financial statements, which may or may not align with the calendar year.