The short run is a time period such that:
a. the existing firms in the industry do not have sufficient time to adjust the quantity of any inputs which they employ.
b. the existing firms in the industry do not have sufficient time to adjust their current rate of output
c. new entrants have sufficient time to build factories and enter the industry.
d. the existing firms in the market do not have sufficient time to increase the size of their existing plants or build new factories.
d
You might also like to view...
Economic advisers who fear that the economy is growing too rapidly would recommend that the government decrease spending and/or increase taxes
Indicate whether the statement is true or false
As the economy moves down and to the left along a short-run aggregate supply curve, it: a. moves up and to the right along the short-run Phillips curve. b. moves up and to the left along the short-run Phillips curve
c. moves down and to the left along the short-run Phillips curve. d. moves down and to the right along the short-run Phillips curve.
If Egypt can produce 3 silver candlesticks or 120 small silver cups in an hour and Turkey can produce 4 silver candlesticks or 160 small silver cups in an hour then
a. neither country would gain by trading b. the terms of trade or 40 silver cups per one silver candlestick and Egypt should only produce silver cups. c. the terms of trade or 40 silver cups per one silver candlestick and Turkey should only produce silver cups. d. the terms of trade or 40 silver cups per one silver candlestick and Egypt should only produce candlesticks. e. the terms of trade or 40 silver cups per one silver candlestick and Turkey should only produce candlesticks.
The optimum quantity of an input occurs when
a. diminishing returns set in. b. marginal revenue product equals input price. c. marginal physical product equals input price. d. marginal revenue product equals output price.