Which of the Following Is a Determinant of Supply

question 61

Multiple Choice

Which of the following is a determinant of supply?

• A) Consumer tastes or preferences.
• B) The prices of the factors of production.
• C) Income.
• D) Number of buyers.

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Definitions:

Sales Volume

The number of units sold within a reporting period, used as a measure of business activity.

Margin of Safety

The difference between actual sales and the break-even point, indicating how much sales can drop before a company incurs a loss.

Break-even Sales

The instance at which all costs are balanced by all revenues, resulting in neither gain nor loss.

Break-even Point

The level of production or sales at which total revenues equal total expenses, resulting in no profit or loss.