What distinguishes the short run from the long run?
A. In the short run, some inputs are fixed, and in the long run, some inputs are fixed.
B. In the short run, all inputs are variable, and in the long run, all inputs are variable.
C. In the short run, all inputs are variable, while in the long run, some inputs are fixed.
D. In the short run, some inputs are fixed, while in the long run, all inputs are variable.
Ans: D. In the short run, some inputs are fixed, while in the long run, all inputs are variable.
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Economies of scope often occur because
A) a production facility can be used to produce more than one product. B) it forces firms to search for economies of scale. C) it enhances the ability to find market niches. D) managers are able to multi-task in product markets
If the shifts in AD that will result from policy changes are fully and accurately anticipated, an increase in government purchases or a decrease in taxes would result in which of the following in the short run?
a. a higher level of real output and a higher price level b. a higher level of real output but no change in the price level c. a higher price level and a reduced level of real output d. a higher price level but no change in real output
The legislation which made it illegal to engage in practices that resulted in the restraint of trade was the:
A. Sherman Act. B. Clayton Act. C. Robinson-Patman Act. D. Celler-Kefauver Act.
Since the demand for radishes is relatively elastic, a tax on radishes would be largely borne by radish farmers.
Answer the following statement true (T) or false (F)