A firm that is earning positive profits in the short run has an incentive to ________ its scale of operation in the long run.
A. expand
B. not change
C. contract
D. encourage another firm to expand
Answer: A
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The income components of GDP include all of the following except
A) wage income. B) foreign income. C) net interest income. D) after-tax profits.
When the supply of a good decreases and its demand increases by the same amount: a. Price will change in the same direction as the shift in demand
b. Price will change in the same direction as the shift in supply. c. Quantity exchanged will change in the same direction as the shift in supply. d. Quantity exchanged will change in the same direction as the shift in demand.
According to Bernanke's policy guide, a full-point decrease in long-term interest rates results in a
A. $1,000 billion stimulus for the economy. B. $20 billion stimulus for the economy. C. $10 billion stimulus for the economy. D. $200 billion stimulus for the economy.
A(n) ________ is a trade policy by which a nation agrees to limit its exports of a good in order to avoid more restrictive trade policies.
A. tariff B. voluntary export restraint (VER) C. import quota D. import ban