A rise in the price of a commodity will generally call forth a bigger supply and this will be brought about partly by existing firms expanding their output and partly by
A. The discovery of new sources of raw materials
B. New firms being attracted into the indus try
C. The general expansion of the market
D. Changes in the general level of consumer's incomes
Answer: Option B
Related Questions on Managerial Economics
The emphasis of managerial economics is on
A. Bonus theory
B. Normative theory
C. System theory
D. Accounting theory
Which is not the subject of Managerial Economics?
A. Accounting Theory
B. Pricing Decision, Policies and Practices
C. Capital Management
D. Profit Management
Which is not covered under the scope of managerial economics?
A. Profit management
B. Accounting theory
C. Pricing policies
D. Production analysis

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