Multiple Choice
Which of the following situations is most likely to generate the largest output effect from a decrease in the price of one of a firm's inputs?
A) The demand for a firm's product is inelastic.
B) The demand for a firm's product is elastic.
C) The inputs used in production are highly substitutable.
D) The inputs used in production are highly complementary.
Correct Answer:

Verified
Correct Answer:
Verified
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