One assumption that distinguishes short-run cost analysis from long-run cost analysis for a profit-maximizing firm is that in the short run,
a. output is not variable.
b. the number of workers used to produce the firm's product is fixed.
c. the size of the factory is fixed.
d. there are no fixed costs.
c
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Refer to the table above. Laborland's net factor payments from abroad equal ________
A) -$18 billion B) -$20 billion C) $25 billion D) $20 billion
Bill is an economics professor who earns $37,000 teaching but decides to leave and fulfill his dream of catering barbecues. During his year of barbecuing he earned total revenue of $60,000. He spent $30,000 on food and supplies
He also paid his wife $10,000 to help serve food. The normal profit for an entrepreneur running a barbecue business is $3,000. Bill also rented an industrial grill/fry truck for $12,000. Bill had an economic A) profit of $20,000. B) loss of -$32,000. C) loss of -$42,000. D) profit of $28,000. E) profit of zero.
According to the new classical view, changes in aggregate demand
a. can temporarily influence output b. affect only the aggregate price level. c. can influence output but at the cost of higher inflation. d. are primarily driven by changes in investment. e. Both a and c
Refer to the information provided in Figure 1.4 below to answer the question(s) that follow.
Figure 1.4Refer to Figure 1.4. At Point E in Panel A, the slope is
A. zero. B. infinite. C. negative. D. indeterminate from this information.