In the Short Run,what Will an Increase in the Price

question 75

Multiple Choice

In the short run,what will an increase in the price level result in?

• A)an increase in the natural rate of output
• B)an increase in the profit margins of many producers
• C)an increase in output prices relative to input prices
• D)an increase in unemployment rates

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Definitions:

Horizontal Merger

The combination of two or more companies that operate in the same industry and are at the same stage in the production process.

Market Share

The segment of a market dominated by a specific company or product.

Acquiring Firm

A company that purchases or takes control of another company through a merger, acquisition, or takeover.

Proxies

Proxies are documents authorizing a person to vote on another shareholder's behalf during a company's shareholder meeting.