The profit effect occurs because, in the short run, resource costs typically do not increase as rapidly as the price of goods and services.
Answer the following statement true (T) or false (F)
True
Some costs, like labor contracts or rents, do not immediately increase when the price level rises.
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According to classical economists,
a. money was a "veil" that determined the nominal values in which such variables as the level of economic activity were measured. b. money can have a temporary impact on output. c. it is the nominal interest rates that matters in decisions to save and invest. d. Both a and b e. Both a and c
The railroad industry in the United States is used as an example of ______.
a. the deadweight loss caused by perfect competition b. government ownership of monopolies c. how monopolies can fail to innovate d. how monopolies are innovators
Which of the following is not a challenge that affects healthcare managers more than other managers?
A. Insurance B. Information asymmetries C. Not-for-profit organizations D. Competition
Some small, new industries are not as efficient as their more mature foreign competitors. The argument for protecting these industries from foreign competition is known as the
A. infant industry argument. B. unfair competition argument. C. antidumping argument. D. national security argument.