Which of the following is not true in the long-run?
a. There are no variable costs.
b. There are no fixed costs.
c. Total costs equal variable costs.
d. Identical firms will make zero profits.
a. There are no variable costs.
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A constitutional balanced budget amendment would
A) require a majority vote of Congress to authorize spending increases. B) require that the federal government maintain a balanced operating budget only. C) require that federal expenditures equal revenues (excluding borrowing). D) divide the federal budget into a capital budget and an operating budget.
Cyclical unemployment
a. recurs over and over among certain people in the economy b. is a matter of not seriously trying to find a job c. occurs because of downturns (recessions) in the business cycle d. occurs because of technological innovations in production e. only occurs with a zero inflation rate
Robin owns a horse stables and riding academy and gives riding lessons for children at "pony camp.". Her business operates in a competitive industry. Robin gives riding lessons to 20 children per month. Her monthly total revenue is $4,000 . The marginal cost of pony camp is $200 per child. In order to maximize profits, Robin should
a. give riding lessons to more than 20 children per month. b. give riding lessons to fewer than 20 children per month. c. continue to give riding lessons to 20 children per month. d. We do not have enough information to answer the question.
The value added of a producer is the
A. value of its total sales once externalities are accounted for. B. total amount for which all its products sell minus its change in inventories. C. quality-adjusted amount of its total sales less any commissions paid. D. value of its output minus the value of the inputs it purchases from other producers.