Which of the Following Will NOT Cause an Increase in the Supply

question 194

Multiple Choice

Which of the following will NOT cause an increase in the supply of cornflakes?

• A)an increase in the price of cornflakes
• B)a cost-saving improvement in the technology of corn production
• C)a reduction in the price of corn
• D)the expectation by producers that the price of cornflakes will fall in the future

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Definitions:

Monopolist

A single seller in a market who has significant control over the price and supply of a good or service, facing little to no competition.

Marginal Cost

The increase in cost incurred by producing one additional unit of a product or service.

Producer Surplus

The difference between what producers are willing to sell a good for and the actual market price they receive, representing a measure of producer welfare.

Average Cost

The total cost divided by the quantity produced, indicating the cost per unit of output.