Which of the Following Increases the Supply of a Good

question 173

Multiple Choice

Which of the following increases the supply of a good?

• A) The price of a complement in production decreases.
• B) Producers expect higher prices for the good in the future.
• C) Productivity improves.
• D) Prices of inputs used to produce the good rise.
• E) The number of producers decreases.

---

Definitions:

Fixed Component

A cost or part of a cost that remains unchanged regardless of changes in the level of output or activity.

Predetermined Overhead Rate

An estimated rate used to allocate manufacturing overhead costs to individual products or job orders based on a specific activity measure, like labor hours or machine hours.

Machine-Hours

A measure of production activity that quantifies the number of hours machines are operated in the production process.

Fixed Component

A cost that does not change with the level of output or activity over a particular period of time.