ECONOMICS (CBSE/UGC NET)

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ECONOMICS

SUPPLY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A new film company’s decision to locate its operations in the film-production center of Southern California is most similar to which of the following?
A
A firm locating close to the inputs of its product
B
A firm locating close to its consumers
C
A firm trying to escape government regulation
D
A firm trying to remove a sudden spike in the costs of its inputs
Explanation: 

Detailed explanation-1: -Firms locate close to input suppliers when inputs, such as raw materials, are expensive to transport. They locate close to consumers when output is more costly to transport.

Detailed explanation-2: -Which of the following describes a way that the minimum wage and rent control are similar? Both involve government intervention in the marketplace.

Detailed explanation-3: -The law of supply says that a higher price will induce producers to supply a higher quantity to the market. Because businesses seek to increase revenue, when they expect to receive a higher price for something, they will produce more of it.

Detailed explanation-4: -Only a change in a non-price determinant of supply causes a good’s supply to increase or decrease.

There is 1 question to complete.
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