Suppose the Price Level Is Rising Faster Than Expected

question 70

Multiple Choice

Suppose the price level is rising faster than expected.Which of the following is among the reasons a firm would find it profitable to expand output in the short run?  

• A) All the firm's costs are contractually fixed. 
• B) Prices for the firm's output are rising with the price level. 
• C) The firm is interested in minimizing cost per unit, but NOT total profits. 
• D) All of the firm's costs are variable.

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