Explain the effect an increase

in prices in the market would have on a factory's

level of production.

Question

Geography

Chaya Mata

5 November, 22:15

Explain the effect an increase

in prices in the market would have on a factory's

level of production.

+4

Answers (1)

Know the Answer?

Nikolai Curry · Answer 1

If the prices that rise are the prices of the product that the factory makes, then, the factory's level of production will increase as well.

For example, if the price of samsung phones rise, then, samsung factories will make more phones because it will sell more, at higher prices, and thus, earn more money.

Explain the effect an increasein prices in the market would have on a factory'slevel of production.

Explain the effect an increase

in prices in the market would have on a factory's

level of production.