Mangerial economics Question 5

Suppose you are a producer of plastic ​kitchen products (mixing bowl, spoons, cups, etc.). You have competitors who produce similar items from steel. Plastics are made largely from petroleum products. Indicate below the impact on the following assuming a decrease in petroleum prices. For purposes here assume that the impact of changing energy costs on steel production is minor or zero. All answers should be considered short-run and first-order effects. In other words, ignore feedback effects.

see the answer options in the photo attachment.

 

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