Business Startup Motives and Profit Definition

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to Lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the motive of suppliers according to the text?

  • To maintain a balance between cost and profit
  • To maximize profit by selling goods at a high price (correct)
  • To minimize cost by producing goods at a low price
  • To increase production without considering cost or profit

What does the supply curve slope upward due to, as per the text?

  • Profit and quantity supplied
  • Costs and quantity supplied
  • Sellers' willingness and ability
  • Costs and profit (correct)

What is meant by 'supply' according to the text?

  • The difference between the cost to produce a good or service and the amount it is sold for
  • The willingness and ability of sellers to produce and offer to sell different quantities of a good at different prices (correct)
  • A relation between the price of a good or service and the quantity of the good or service a supplier is willing to sell at that price
  • The number of units of a good produced and offered for sale at a specific price

What does the law of supply state, according to the text?

<p>Price and quantity supplied are positively related (B)</p> Signup and view all the answers

What creates an incentive to increase the quantity supplied, based on the text?

<p>Increase in price of the good or service (C)</p> Signup and view all the answers

What is the quantity supplied of a good?

<p>The amount of the good that sellers are willing and able to sell (C)</p> Signup and view all the answers

According to the law of supply, what happens when the price of a good rises?

<p>The quantity supplied of the good rises (C)</p> Signup and view all the answers

What factor can cause a shift in the supply curve?

<p>Change in technology (B)</p> Signup and view all the answers

What would encourage production according to the text?

<p>Government subsidies (A)</p> Signup and view all the answers

How do expectations about future prices affect the supply curve?

<p>Expecting higher future prices shifts the supply curve to the left (C)</p> Signup and view all the answers

Flashcards are hidden until you start studying

More Like This

Use Quizgecko on...
Browser
Open
Browser
Browser