Which of the following is true in the short run?
What will be an ideal response?
Per-unit costs do not increase as much as output prices when the price level rises.
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The wage gap between high school and college graduates can be explained, other things the same, by ________
A) a greater increase in the demand for high school educated labor than college-educated labor B) a greater increase in the supply of college-educated labor than high school educated labor C) a greater increase in the demand for high school educated labor than in the supply of high school educated labor D) a greater increase in the demand for college-educated labor than high school educated labor
Lisa runs a local flower shop. If it rains on Valentine's Day and she opens the shop, she will lose $200. If it does not rain on Valentine's Day, she will earn $500 dollars as profits
What is Lisa's expected profit on Valentine's Day if she only knows that there is a 30% chance of rain that day? A) $350 B) $290 C) $200 D) $150
In the classical model, a rightward shift in the aggregate demand curve will, in the long run,
A) increase real GDP and the price level. B) increase real GDP and will not change the price level. C) decrease real GDP and will not change the price level. D) not change real GDP and will increase the price level.
You're called in as a consultant: Price is $24 . At a production level of 200 units, MC = MR, AFC = $6, and AVC = $25 . What do you advise this firm to do?
a. Increase output. b. Decrease output. c. Shut down operations. d. Stay at the current output; the firm is earning a profit of $1,400. e. Stay at the current output; the firm is losing $1,400.