The long run is defined as the time period in which
A. the firm can alter its rate of production.
B. the firm can vary only one input.
C. all factors of production can be altered.
D. the firm can make positive economic profits.
Answer: C
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Which of the following is not appropriate, if we live in a world of fixed exchange rates?
A) monetary approach to the exchange rate B) elasticities approach C) monetary approach to the BOP D) absorption approach
Big Waves is a large water park. Suppose the individual demand for entrance into Big Waves is Qd = 50 - (2 × P) and each consumer has the same demand. Big Waves has a constant marginal cost of $5 per consumer. If Big Waves practices two-part pricing and requires a membership fee and then a separate entrance fee, what is the profit-maximizing membership fee?
A) $400 B) $200 C) $50 D) $125
We can predict the outcome of a two-player game as long as
a. each player follows a strategy that negates the other player's strategy b. at least one player has a bilateral strategy c. neither player has a subsistence strategy d. neither player has a dominant strategy e. at least one of the players has a dominant strategy
A decrease in the marginal product of labor would be represented by
a. increase in labor demand. b. decrease in labor demand. c. increase in the quantity demanded of labor. d. decrease in the quantity demanded of labor. e. an increase in wages.