Input prices affect the firm's ________,and output prices affect the firm's ________.
A) revenue; costs
B) costs; costs
C) costs; revenue
D) revenue; revenue
E) decisions in the short run but not in the long run; decisions in the long run but not in the short run

Question

Quizplus · Accepted Answer

Input prices affect the firm's costs, as they determine the cost of producing goods or services. Output prices affect the firm's revenue, as they determine the income from selling the goods or services produced. Therefore, the correct answer is C - costs are affected by input prices and revenue is affected by output prices.

Input Prices Affect the Firm's ________,And Output Prices Affect the Firm's