Producers Are Willing and Able to Offer Greater Quantities for Sale

question 185

Multiple Choice

Producers are willing and able to offer greater quantities for sale at higher prices because

• A)they have the incentive to pay the increasing opportunity cost of resources to attract them from alternative uses
• B)they will decrease their profits by expanding production at higher prices
• C)the government orders them to do so
• D)lower prices attract new firms, which have higher costs of production
• E)they hire superior quality, higher-priced resources as production expands

---

Definitions:

Reactions

Responses or adjustments made by individuals, markets, or materials to external changes or stimuli.

Oligopoly

An economic condition where few companies have significant control over an industry or product, limiting competition and potentially influencing prices and production.

Herfindahl-Hirschman Index

An index used to assess the concentration of market power to determine the degree of competition in a sector.

Squared Market Shares

A measure used in economics to assess the level of market concentration by squaring the market share percentages of each firm within the industry and then summing them.