Fixed Resource Prices Help Explain Why Firms

question 15

Multiple Choice

Fixed resource prices help explain why firms

• A)increase output in the short run when the price level increases
• B)keep production levels constant in the short run when the price level decreases
• C)sell output in the short run at fixed prices
• D)increase output in the long run when the price level increases
• E)decrease production when nominal wages fall in the long run

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Definitions:

Liberty

The condition of liberty in society from authoritarian limitations on one's lifestyle, conduct, or political opinions.

Individual

Referring to a single person or thing, distinct from others in a group or category.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Enforce Decisions

The act of implementing or ensuring compliance with a rule, law, or decision through authority or legal means.