If the Demand for Hand-Sewn Leather Shoes Increases,it Is Highly

question 70

Multiple Choice

If the demand for hand-sewn leather shoes increases,it is highly likely the demand for:

• A) leather will decrease.
• B) skilled sewers will increase.
• C) needle and thread will decrease.
• D) all shoe-types will also increase.

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Definitions:

Marginal Revenue

Revenue gained by selling an additional unit, illustrating the increase in total revenue due to one more unit of output sold.

Innovation

The process of creating new products, services, or methods that improve efficiency or effectiveness.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, indicating the overall profitability of a business venture.

Profit-Maximizing

A strategy or goal of a firm to achieve the highest possible profit from its operations.