"The long run doesn't exist; it's a goal towards which we strive.". Explain this statement
Firms operate in the short run, continually making choices that affect their long-run potential. Yet there
is never a point at which everything is variable for the firm, thus, there is no long run. The world is
constantly changing, continually throwing out shocks to which the firm must adapt. The goal is long-run
profits but it is achieved through short-run decisions.
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Under the Bretton Woods exchange rate system, ________ could sell their dollars to the American government in exchange for gold
A) American citizens B) foreign central banks C) foreign citizens D) all of the above
A system by which firms assign their customers for collection purposes to regional banks that transfer funds to a central bank is known as:
A) A lock-box system B) A zero-balance account C) A wire transfer D) Concentration banking
Which of the following statements is false?
A) Asymmetric information can exist both before and after a transaction. B) Moral hazard occurs when one party to a transaction changes his or her behavior in a way that is hidden from and costly to the other party. C) Adverse selection has the potential to eliminate some markets. D) none of the above
Recall the Application about federal quality standards in the market for kiwifruit to answer the following question(s).Recall the Application. The U.S. kiwifruit information asymmetry was reduced by advertising.
Answer the following statement true (T) or false (F)