When the Price of All Inputs Increase by the Same

question 40

Multiple Choice

When the price of all inputs increase by the same percentage:

• A)the firm's total cost curve will rotate upward by a higher percentage if the firm's production technology exhibits decreasing returns to scale.
• B)the firm's total cost curve will rotate upward by the same percentage.
• C)the firm's total cost curve will rotate upward by a higher percentage if the firm's production technology exhibits increasing returns to scale.
• D)the firm's total cost curve will remain unchanged since the cost-minimizing combination of inputs is unchanged.

Analyze how price discrimination affects production quantity and profit in monopolistic markets.

Identify the differences in demand elasticity and how they influence price discrimination strategies.

Differentiate between price discriminating and nondiscriminating monopolists regarding output and profitability.

Explain the conditions necessary for successful price discrimination.

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Definitions:

Decimal Places

The tally of digits found on the right side of the decimal point in a number, showing its precision level.

Percent Format

A way of displaying numbers as a fraction of 100, often represented with a "%" symbol.

Comma Number

Typically involves formatting numbers with commas to separate thousands, improving readability, though the specifics might vary.

Decrease Decimals

A function in spreadsheet software that reduces the number of decimal places displayed in a number.