Whenever an Input Makes Up a Large Percentage of a Good's

question 96

Multiple Choice

Whenever an input makes up a large percentage of a good's final cost, an increase in that input's price will

• A) affect total cost relatively more.
• B) not affect total revenues.
• C) affect only accounting profits.
• D) cause the firm to shutdown.

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Definitions:

U.S. Food and Drug Administration

A federal agency of the United States Department of Health and Human Services, responsible for protecting public health by ensuring the safety and efficacy of drugs, biological products, and medical devices.

Heartwise Cereal

A fictional or specific brand of cereal marketed for its cardiovascular health benefits.

Intestinal Health

A state of physical well-being related to the functioning of the gastrointestinal tract.

Ken's Salad Dressing

A brand of salad dressing and marinades created by Ken's Foods, known for its variety of flavors.