In the Short-Run an Increase in the Costs of Production

question 71

Multiple Choice

In the short-run an increase in the costs of production makes

• A)output and prices rise.
• B)output rise and prices fall.
• C)output fall and prices rise.
• D)output and prices fall.

---

Definitions:

Market Value

The current price at which an asset or a company can be bought or sold in a public market.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the business' operating cycle, whichever is longer.

Accounts Receivable

Money owed to a company by its debtors for goods or services that have been delivered or used but not yet paid for.

Bonds

Fixed-income investments representing a loan made by an investor to a borrower, typically corporate or governmental, with terms defining the interest rate and maturity date.