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.

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Definitions:

Federal Court

The national court system in a country, dealing with cases that involve federal laws, conflicts between states or provinces, or actions involving the government.

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A legal case that establishes a principle or rule that courts may follow when deciding subsequent cases with similar issues or facts.

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A legal obligation to avoid conduct that could foreseeably harm others, often associated with negligence.

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