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Producers/firms are most commonly connected to

A. price.
B. supply.
C. demand.
D. opportunity cost.

1 Answer

5 votes
Producers/firms are most commonly connected to B.) SUPPLY.

The Law of Supply states that holding all factors equal, the higher the price of the good, the higher the supply. This is to maximize the profit a producer gets in supplying high-priced products.


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