A Reduction in Production Costs Will Result in A(n)

question 202

Multiple Choice

A reduction in production costs will result in a(n) :

• A) rightward shift of the supply curve.
• B) increase in supply.
• C) greater willingness and ability of producers to supply a larger quantity at any given price.
• D) greater willingness and ability of producers to supply the same quantity at a lower price.
• E) all of the above.

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Definitions:

Supplies

Materials and items consumed or used in the operation of a business or manufacturing process that are not part of the final product.

Unearned Rent

Income received by a company for rent that has not yet been earned because the rental period has not occurred.

Prepaid Rent

An expense that has been paid in advance for the use of a property, recognized as an asset until the rental period occurs.

Rent Revenue

Income earned from leasing out properties or equipment to tenants or lessees.