Why might equipment costs be short-run costs in one business but long-run costs in another?
a. The size and complexity of a business contributes to the nature of its capital costs.
b. Companies in business for a long time have established credit with equipment vendors.
c. Some equipment is poorly made and does not last through longer production runs.
d. Equipment is a variable input that is not affected by output or length of production.
a. The size and complexity of a business contributes to the nature of its capital costs.
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The arrangements that individuals have with each other to exchange goods is known as
A) demand. B) supply. C) a market. D) complements.
If the marginal cost were $12, how many units of output would this firm produce?
A. 1
B. 2
C. 3
D. 4
In the United States, monetary policy is determined by
A. private citizens. B. the Treasury Department. C. the Federal Reserve. D. the president.
Which of the following is a type of ownership that features a fixed payment?
a. common stock b. preferred stock c. retained earnings d. bonds