In the short run, total output in an industry
A. is absolutely fixed.
B. may be altered by varying the size of plant and equipment that now exist in the industry.
C. can vary as the result of new firms entering or leaving the industry.
D. can vary as the result of using a fixed amount of plant and equipment more or less intensively.
Answer: D
You might also like to view...
Refer to Figure 2-6. If the economy is currently producing at point E, what is the opportunity cost of moving to point B?
A) 60 thousand spoons B) 26 thousand forks C) 0 spoons D) 20 thousand forks
Refer to the figure shown, which represents the production possibilities frontiers for Countries A and B. Which of the following statements is true? The opportunity cost of a truck in Country A is:
A. 30 cars. B. 3 cars. C. 6 trucks. D. 5 cars.
Economics is a social science that is concerned with:
of productive resources so there is a minimum level of income b. The best use of scarce resources paid for at the highest level of cost to consumers and businesses c. The best use of scarce resources to achieve the maximum satisfaction of economic wants d. Increasing the amount of productive resources so there is maximum output in society
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.