The short run is that period in which firms:
a. are free to vary all inputs
b. are able to vary some, but not all, inputs.
c. can vary inputs, but only by varying all of their inputs in equal proportion.
d. cannot increase production at all.
b
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"The national debt is too large. The government must stop spending so much money." This statement is
a. a normative statement. b. a positive statement. c. a testable hypothesis. d. both b and c.
The Argentine banking crisis of 2001 resulted from Argentina's banks being required to
A) purchase large amounts of government debt. B) pay back the value of failed loans. C) make risky real estate loans. D) make loans to only state-owned businesses.
A firm will increase its spending on advertising until
A) it has monopolized the market. B) it has deterred all future entry. C) the marginal benefit of advertising is zero. D) the marginal benefit of advertising equals the marginal cost of advertising.
Government fiscal policies that attempt to stimulate aggregate demand are often aimed at reducing cyclical unemployment
a. True b. False Indicate whether the statement is true or false