In General, When the Price of a Fixed Factor of Production

question 118

Multiple Choice

In general, when the price of a fixed factor of production increases:

• A)the profit-maximizing price falls.
• B)marginal cost is unchanged.
• C)marginal cost increases.
• D)the profit-maximizing level of output increases.

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Definitions:

Freudian Concept

A theory or idea originating from the work of Sigmund Freud, focusing on aspects of human psychology such as the unconscious mind, libido, and psychosexual development.

Ego

In psychological terms, a part of the mind that mediates between the conscious and the unconscious and is responsible for reality testing and a sense of personal identity.

Unconscious Motive

A hidden, often irrational force that drives an individual's behavior without their awareness.

Freud's Notion

Refers to the ideas or theories proposed by Sigmund Freud, particularly those related to human psychology, desires, and unconscious motivations.