Author Question: What three decisions do firms make simultaneously? What will be an ideal ... (Read 88 times)

maegan_martin · **on:** Jun 29, 2018

What three decisions do firms make simultaneously?

What will be an ideal response?

Question 2

Explain what change will bring a movement along a curve.

What will be an ideal response?

joechoochoy · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

(1.) How much to supply.
(2.) Which technology to use.
(3.) How much of each input to demand.

Answer to Question 2

A movement along a curve occurs when the value of a variable on one of the axes changes while all of the other relevant variables not graphed on the axes do not change. The movement along the curve shows the effect of the variable that changes, ceteris paribus (holding all of the other non-graphed variables constant).