Suppose a Firm Is Collecting $1,345 in Total Revenues and the Total

question 94

Multiple Choice

Suppose a firm is collecting $1,345 in total revenues and the total cost of its fixed factors of production rises from $200 to $300.One can speculate that the firm will:

• A)expand output.
• B)raise price.
• C)earn greater profits or smaller losses.
• D)earn smaller profits or greater losses.

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Definitions:

Production Techniques

Methods and processes used in the transformation of inputs into outputs or goods and services.

New Approaches

Innovative or alternative methods and strategies introduced to address issues or improve existing processes.

Standard of Living

The measure of affluence, convenience, tangible assets, and basic needs present for a particular economic group or location.

Labor Productivity

A gauge of economic productivity that determines the output of goods and services for every hour worked.