In General,if the Price of a Fixed Factor of Production

question 1

Multiple Choice

In general,if the price of a fixed factor of production increases:

• A)price rises.
• B)marginal costs are unchanged.
• C)marginal costs increase.
• D)the profit maximizing level of output falls.

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Definitions:

Monthly Cash Flows

The net amount of cash being transferred into and out of a business during a particular month.

Miller-Orr Model

A financial model used to manage cash flows and cash reserves, predicting the optimal level of cash balance a company should maintain.

Weekly Interest Rate

The amount of interest charged or earned over a week, often used to describe the rate for loans or savings accounts on a weekly basis.

Disbursements

Payments made by a business in cash or cash equivalents, often pertaining to operating expenses.