For This Question,assume That Firms Experience an Increase in Sales

question 34

Multiple Choice

For this question,assume that firms experience an increase in sales.We would expect that this increase in sales will cause

• A)an increase in profit per unit of capital.
• B)a decrease in profit per unit of capital.
• C)no change in profit per unit of capital.
• D)ambiguous effects on profit per unit of capital.
• E) none of the above

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Definitions:

Productive Resources

The inputs used in the production of goods and services, typically categorized into land, labor, and capital.

Population Growth Rate

The population growth rate is a measure of how the number of individuals in a population increases or decreases over time, usually expressed as a percentage.

Economic Development

The process by which the overall health, wellbeing, and economic capabilities of a country improve, often through targeted policies and investments.

Available Resources

Assets, materials, and inputs that can be utilized to produce goods and services.