Knowing that in the real world, the demand for goods and services could change unexpectedly, firms would attempt to deal with it by:
A)Producing different levels of goods and services according to the changes in demand
B)Switching to the production of another product in the short-run
C)Closing down the production in the short-run with the hope that the situation would change in the future
D)Maintaining an inventory
D)Maintaining an inventory
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Use the above table. What will the price be when external costs are internalized with a tax?
A) $14 B) $13 C) $12.20 D) $1.80
Anna's Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna holds an auction between the two customers, the expected value of this auction is
a. $70 b. $78 c. $85 d. $100
Which of the following is not a public good?
A. A coastal lighthouse B. National defense C. A flood-control levee D. The latest Walt Disney movie
If a particular production process is subject to diminishing marginal returns to labor at every level of output, then at every level of output
A) AC is upward sloping. B) MC exceeds AVC. C) AFC is constant. D) All of the above.