Which of the following statements is true in the context of the long run?
a. All the factors of production are fixed.
b. No new firms enter the market.
c. The producer can vary all the factors of production.
d. The firms earn positive economic profit.
e. Large firms tend to acquire market power.
c
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When consumers would have been willing to pay higher prices at various quantities consumed than the market clearing price, the differences are called
A) consumer surplus. B) monopoly profits. C) opportunity cost. D) deadweight loss.
If total spending is less than the value of total output, firms
a. may decide to cut prices. b. may increase production levels. c. will tend to raise prices. d. will notice inventories falling.
Anthony and Addie are playing the ultimatum game, starting with $100 . The coin flip results in Anthony being the one to propose a division of the $100 . Anthony proposes that he gets $99 and Addie gets $1 . Which of the following statements is correct?
a. Because the 99-1 split isn't fair, Anthony should not make this offer. b. Conventional economic theory predicts that Anthony will propose a 99-1 split, just as he did. c. Experimental evidence suggests that Addie will accept the 99-1 split because, even though it isn't fair, it's better than nothing. d. Economic theory predicts that Anthony should choose a 60-40 split to maximize his payoff.
________ is an important element of corporate culture.
A. Establishing expectations of employees B. Establishing female participation in decision-making process C. Establishing dress code and political correctness in the workplace D. Ensuring proper coordination among employees