The long run refers to a time period
A) long enough for a firm to pay all of its creditors in full.
B) long enough for a firm to change the use of its variable inputs.
C) long enough for a firm to vary all of its inputs, to adopt new technology, and change the size of its physical plant.
D) during which a firm is able to purchase all of its inputs, including its plant and equipment.
C
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According to this Application, workers in the EU were more productive than workers in Latvia in the 1990s, yet EU nations still purchased products from Latvia. This is because Latvia ________ in the production of the products it sold to EU nations
A) used fewer resources B) had a higher opportunity cost C) had an absolute advantage D) had a comparative advantage
Which of the following is one component of the "trilemma" that is faced by policy makers in choosing monetary arrangements?
A) exchange rate stability B) restrictions on international capital movements C) tariffs and subsidies D) restrictions on the migration of labor E) global inflation
If the level of output produced by the firms in a perfectly competitive market has no effect on the prices of the inputs used by the firms, the market supply curve will be flatter than the supply curve for an individual firm in the market
Indicate whether the statement is true or false
Suppose we observe that the demand for eggs increases when people buy more potatoes. We can conclude that eggs and potatoes are
A) inferior goods. B) normal goods. C) complements. D) substitutes.