Ask Question
6 October, 17:02

Suppliers will supply more of a good when the price of that good rises because the opportunity cost of producing that good has risen.

A. True

B. False

+5
Answers (1)
  1. 6 October, 17:24
    0
    B. False

    Explanation:

    Opportunity cost of producing a good for the supplier are the profits that they could make from other goods that they are not producing, for example if a supplier is producing cars the opportunity cost are the profits that the supplier can make by producing other products instead of cars. This statement is wrong because when the price of a good increases the opportunity cost of producing the good does not change because the opportunity cost of producing the good depends on the price and profits of other goods. In this case when the price increases the suppliers will supply more of this good because the opportunity cost of not producing the good increases because they can make higher profits now.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppliers will supply more of a good when the price of that good rises because the opportunity cost of producing that good has risen. A. ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers