When an Input Represents a Small Proportion of a Firm's

question 262

Multiple Choice

When an input represents a small proportion of a firm's total costs, then

• A) demand for the input will tend to be less elastic.
• B) the input demand will vary significantly with a change in input price.
• C) the usage of the input cannot be varied in the production function.
• D) output demand will be highly elastic.

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Definitions:

General Damages

General damages refer to a monetary compensation awarded in a lawsuit for non-monetary losses, such as pain and suffering or emotional distress.

Punitive Damages

Monetary compensation awarded to a plaintiff, over and above actual damages, intended to punish a defendant for particularly harmful behavior and deter future similar acts.

Right Eye

Referring to the eye located on the right side of a person's face.

Special Damages

Specific damages that would flow from a breach of contract.