What Will Be the Result If the Nation Experiences a Technological

question 121

Multiple Choice

What will be the result if the nation experiences a technological breakthrough in the production process?

• A)Business costs will rise, profits will fall, and production will decrease.
• B)Business costs will fall, but profits also will fall and production will remain at the pre-breakthrough level.
• C)Business costs will decline, improving profitability, and production will increase.
• D)Firms will make higher profits but will not increase production.

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Definitions:

Two-Part Tariffs

A pricing strategy that consists of a fixed fee plus a variable usage fee.

Supply Chain

The entire system of producing and delivering a product or service, from the supplier of raw materials to the customer.

Chain Profits

The overall financial gains generated through the interconnected stages of a supply chain.

Forward Buy

The purchasing strategy of a product in larger quantities when it is priced lower, to use or sell over time as prices increase.