In the Short Run, Firms Expand Their Production When the Price

question 123

Multiple Choice

In the short run, firms expand their production when the price level rises because

• A) the money wage rate remains constant so the higher prices for their products makes it profitable for firms to expand production.
• B) each firm must keep its production up to the level of its rivals, and some firms will expand production as the price level increases.
• C) the higher prices allow the firm to hire more workers by offering higher wages, thereby increasing productivity and profits.
• D) firms can increase their profits by increasing their maintenance.

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Definitions:

Values

The deeply held beliefs and principles that guide an individual's actions and judgments about what is important in life.

Religion Promotes

Religion often promotes moral values, community cohesion, and a sense of purpose and belonging among its adherents, influencing individual behavior and societal norms.

Stratification

The hierarchical arrangement of individuals in a society, often based on factors like wealth, power, and prestige.

Subordination

The condition of being lower in rank or position, or the process of placing someone or something in such a lower position.