Multiple Choice QuestionThe imperfectly competitive seller produces Blank______ of a product and demands Blank______ resources than a purely competitive seller does when resource prices fall.Multiple choice question.less; fewerless; moremore; moremore; fewer
Question
Multiple Choice QuestionThe imperfectly competitive seller produces Blank______ of a product and demands Blank______ resources than a purely competitive seller does when resource prices fall.Multiple choice question.less; fewerless; moremore; moremore; fewer
Solution
The correct answer is "more; fewer".
Here's why:
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An imperfectly competitive seller has some control over the price of their product. This means they can adjust their production levels to maximize profits. When resource prices fall, it becomes cheaper to produce more of a product. Therefore, they will produce "more" of a product.
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At the same time, because it's cheaper to produce each unit of the product, they will need "fewer" resources (in terms of money) to produce the same amount of product. Therefore, they demand "fewer" resources.
So, the correct answer is "more; fewer".
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