An Increase in the Quantity of Output Will Cause the Cost

question 83

Multiple Choice

An increase in the quantity of output will cause the cost minimizing quantity of an input to go ________ if the input is a normal input and will cause the cost minimizing quantity of the input to go _________ if the input is an inferior input.

• A)up; up
• B)up; down
• C)down; up
• D)down; down

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Definitions:

Fee Simple Absolute

The most complete ownership of land possible, with unconditional and permanent property rights.

Life Estate

A property interest that lasts for the lifetime of an individual, after which the property passes to another designated party.

Conditional Estate

A property interest that is dependent on the occurrence or non-occurrence of a specified condition.

Easement

A right granted to a party to use the property of another for a specific purpose, like a right-of-way.