In the short run:
A. the firm is free to change the amount of capital it uses.
B. all inputs are variable.
C. there are no variable inputs.
D. at least one input is fixed.
D. at least one input is fixed.
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In general, individuals and nations should specialize in producing those goods for which they have a(n):
A. absolute advantage. B. absolutely comparative advantage. C. absolute advantage and a comparative advantage. D. comparative advantage.
The interest rate on interbank loans is called the
A) discount rate. B) federal funds rate. C) repo rate. D) prime rate.
Which of the following is true in the short run at the output level where average total cost is at its minimum?
a. Marginal cost equals average total cost. b. Average variable cost equals fixed cost. c. Marginal cost equals average variable cost. d. Average total cost equals average fixed cost. e. Average total cost equals average variable cost.
That some firms are engaged in more than one type of business is explained, in some cases, by
a. moral injunctions such as the Golden Rule. b. the existence of charitable organizations. c. government regulations that discourage the internalization of externalities. d. the fact that the internalization of externalities sometimes coincides with the self-interest of the relevant parties.