An automobile manufacturer uses land, labor, capital, and ...

[itsmyluck]

An automobile manufacturer uses land, labor, capital, and entrepreneurial ability to produce cars and trucks. If the price of trucks increases, the automobile manufacturer would not _____.
 a. pay a lower wage rate to labor
  b. increase truck production
  c. hire more workers
  d. increase capital used in production
  e. increase land used in production

Question 2

Which of the following is true?
 a. Sellers are willing to supply more of a good or service at every price after costs have increased.
  b. A fall in the price of a product leads to an increase in the profits earned by sellers.
 c. A fall in the cost of production leads to a downward movement along the supply curve of a product.
  d. Sellers are willing to supply more of a good or service at every price after costs have decreased.
  e. An increase in the price of a product leads to a fall in the profits earned by sellers.

[ms_sulzle]

Answer to Question 1

a

Answer to Question 2

d