Author Question: Producers are willing and able to offer greater quantities for sale at higher prices because a. ... (Read 66 times)

asan beg · **on:** Jul 1, 2018

Producers are willing and able to offer greater quantities for sale at higher prices because
a. they have the incentive to pay the increasing opportunity cost of resources to attract them from alternative uses
b. they will decrease their profits by expanding production at higher prices
c. the government orders them to do so
d. lower prices attract new firms, which have higher costs of production
e. they hire superior quality, higher-priced resources as production expands

Question 2

Which of the following is the reason supply curves typically slope upward?
a. Opportunity cost of production increases as quantity supplied increases.
b. Supply increases as opportunity cost decreases.
c. Price increases as supply decreases.
d. Quantity supplied is unrelated to price.
e. The income and substitution effects of a price change.