Over Time,if Customer Demand Continually Exceeds Potential Output,firms Will Eventually

question 38

Multiple Choice

Over time,if customer demand continually exceeds potential output,firms will eventually

• A) raise their production levels aggressively.
• B) lower their production levels or raise them only slightly.
• C) raise their prices aggressively.
• D) lower their prices or raise them only slightly.
• E) require government intervention.

---

Definitions:

Sales

Transactions involving the exchange of goods or services for money, contributing to a company's revenue.

Break-Even Point

The Break-Even Point is the level of production or sales at which total revenues equal total costs, resulting in no profit or loss for the business.

Sales Dollars

Sales dollars refer to the total revenue generated from goods or services sold by a company, expressed in monetary terms.

Pretax Income

The income of a company before tax is deducted.