Which of the Following Is an Example of Changes Along

question 15

Multiple Choice

Which of the following is an example of changes along the intensive margin?

• A) A firm hires more workers because demand for the good has increased.
• B) A new firm closes because a recession causes sales to drop too low.
• C) A worker leaves her job to stay at home with her children.
• D) After the iPhone was developed,several competitors entered to earn a profit.
• E) Consumers demand more high-definition TVs,so the price of other types of
• TVs decreases.

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Definitions:

Raise Profits

Efforts or strategies implemented by a company aimed at increasing its net earnings or bottom line, through means such as reducing costs, increasing sales, or enhancing productivity.

Two-part Tariff

A pricing strategy that involves a fixed fee plus a variable charge based on the amount of goods or services consumed.

Marginal Cost

The financial outlay for making an additional unit of a good or service.

Profit-maximizing

A strategy or process employed by firms aiming to achieve the highest possible profit by adjusting factors such as output, price, and input use.