A large timber farm supplies large building contractors with plywood and stick lumber. The managers of the timber farm have noticed that the demand for their timber tends to fluctuate with long-term business cycles and short-term changes in their timber production lead to sharp increases in their marginal cost. With this information, it is likely that ________-term forecasts are more valuable to
the managers of the timber farm and the cost of ________-term forecasts are likely to exceed their benefit.
A) short; extended
B) short; long
C) long; short
D) long; extend
C) long; short
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The wage rate is the price of a unit of labor. What happens to the quantity of labor supplied if the wage rate increases?
A. It increases. B. It decreases. C. It does not change. D. Uncertain-economic theory has no answer to this question.
When a resource has a perfectly elastic supply curve
A) the amount of economic rent for the resource is determined by its supply. B) the amount of economic rent for this resource is determined by demand for the resource. C) there is no economic rent being earned by this resource. D) the entire payment received by this resource is economic rent.
The antitrust legislation that made it illegal for a firm to buy a competitor's voting stock was the
a. Sherman Antitrust Act b. Cellar-Kefauver Act c. FTC Act d. Robinson-Patman Act e. Clayton Act
When the price of peaches changes, the demand curve for peaches
a. shifts because the price of peaches is measured on the vertical axis of the graph. b. shifts because the quantity demanded of peaches is measured on the horizontal axis of the graph. c. does not shift because the price of peaches is measured on the vertical axis of the graph. d. does not shift because the price of peaches is measured on the horizontal axis of the graph.