Assume That the Production Technology Required to Produce Goods X

question 106

Multiple Choice

Assume that the production technology required to produce goods X and Y are very similar. If a firm that is producing good X notices that the market price of good Y is rising, it will:

• A)intensify its production of good X.
• B)shift into producing good Y.
• C)anticipate a price increase for good X.
• D)charge a higher price for good X.