Firms will be willing and able to produce more output only when prices rise because the______cost of production is rising.
Business · High School · Mon Jan 18 2021
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Firms will be willing and able to produce more output only when prices rise because the opportunity cost of production is rising."
The opportunity cost of production refers to the value of the next best alternative forgone when resources are used to produce a particular good or service. When prices rise, firms may find it more profitable to allocate resources to production, thereby increasing output.