Which of the Following Would Generally Cause Firms to Expand

question 187

Multiple Choice

Which of the following would generally cause firms to expand output in the short run?

• A) a proportional increase in the prices of goods and services and the costs of producing them
• B) higher profit margins as the result of an unexpected increase in the prices of goods and services
• C) an unexpected reduction in aggregate demand
• D) an increase in wages and the prices of other resources

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Definitions:

Drawbar

The device used to connect a trailer tongue to either a pintle hook or a ball hitch.

Pintle Hook

A type of towing hitch used to connect trailers or other towable equipment to a vehicle or equipment, characterized by a hook-and-loop configuration.

Fiber Reinforced Plywood (FRP)

A composite material made by reinforcing plywood with fibers to enhance its strength and durability.

Trailer Construction

The process or methodology of building structures designed to be pulled behind a vehicle, often involving the assembly of chassis, body, and components.