Among the Reasons Firms Find It Profitable to Expand Output

Multiple Choice

Among the reasons firms find it profitable to expand output in the short run when the price level is rising faster than expected is that

A) all firms' costs are contractually fixed
B) prices for firms' output are rising with the price level
C) firms are interested in minimizing cost per unit,not total profits
D) all firms' costs are variable
E) the quantity of resources available to the economy is fixed