If the Price of a Substitute Increases,which of the Following

question 32

Multiple Choice

If the price of a substitute increases,which of the following is most likely to happen in the market for the product under consideration in the short run?

• A)Supply will increase.
• B)Firms will leave the market.
• C)Firms will devote more variable inputs in the production of this good.
• D)Firms will devote less variable inputs in the production of this good.

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Definitions:

Lean Principles

A management philosophy focused on minimizing waste within manufacturing systems while simultaneously maximizing productivity.

Service Businesses

Companies that provide intangible products or services, such as consulting, repair, or maintenance.

Non-Value-Added

Processes or activities that do not add value or contribute to the customer's perceived value of a product or service.

Cell Conversion Costs

Expenses incurred during the transformation of materials into finished goods, specifically within a manufacturing cell or unit.