A short-run cost function assumes that
A. all inputs are fixed in supply.
B. at least one input is fixed in supply.
C. the level of output is fixed.
D. both a and b
E. both b and c
Answer: B
You might also like to view...
In the 1990s, Congress considered an agriculture bill that would gradually reduce price supports for many agricultural products. If the bill were to be approved, what would most likely happen to the number of families employed in agriculture?
A. It would decrease, because agricultural prices would fall. B. It would decrease, because agricultural prices would rise. C. It would increase, because agricultural prices would fall. D. It would increase, because agricultural prices would rise.
Using the annuity rule, an annuity that pays $10 annually has a present value of $200 if the market interest rate is:
A. 20 percent. B. 10 percent. C. 5 percent. D. 15 percent.
If the price of a product decreases, we would expect
What will be an ideal response?
A reduction the amount of oil (a resource) will tend to cause which of the following?
A. an increase in the price level and no change in output if accompanied by an increase in the money supply B. a reduction in output with no change in the price level C. a reduction in output and an increase in the price level D. a reduction in output and a reduction in the price level