Any Permanent Change in the Quantity of Any Factor of Production

question 161

True/False

Any permanent change in the quantity of any factor of production available capital, technology, land, or labor can cause a shift in both the long-run and short-run aggregate supply curves.

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Definitions:

Outside Supplier

A third-party entity that provides goods or services to a company, which are not produced in-house.

Contribution Margin

The amount by which sales revenue exceeds variable costs of production, indicating how much revenue contributes to fixed costs and profits.

Motor Division

A specialized department or subsidiary within a company focused on the development and manufacturing of engines or motor vehicles.

Maximum Price

The highest price that can be charged for a product or service, often set by regulatory authorities or by market conditions.