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The Manager of a Company Notices That the Company's Total

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The manager of a company notices that the company's total revenue would increase if she raised the price of the company's product. Accordingly, the manager can assert that the demand for the company's product is:


Definitions:

Long-Run Supply Function

A relationship that shows the quantity of goods a firm is willing and able to produce and supply to the market at different possible prices over a long period, considering all inputs as variable.

Factor Prices

The amounts paid to the factors of production, such as wages for labor, rent for land, and profit for capital.

Production Function

A mathematical framework defining the association between the resources used in production and the output generated.

Factor Prices

The prices paid for the use of factors of production, such as labor, capital, and land, in the production process.

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