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If Crude Oil Is a Variable Factor of Production for a Firm

Question 153

Multiple Choice

If crude oil is a variable factor of production for a firm, then an increase in the price of crude oil will lead to:


A) a decrease in the quantity supplied by the firm, but no change in the firm's supply.
B) a decrease in the firm's supply.
C) an increase in the quantity supplied by the firm, but no change in the firm's supply.
D) an increase in the firm's supply.

Correct Answer:

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