During the short run, a firm cannot
A. purchase more raw materials.
B. change its plant size.
C. increase its use of labor.
D. change its variable costs.
Answer: B
You might also like to view...
Financial intermediaries emerged
A) to make loans to governments. B) to provide a market for municipal bonds. C) to reduce transactions costs for small savers and borrowers. D) to reduce transactions costs for traders in stocks and bonds.
How are rule-based policies similar to adaptive expectations?
What will be an ideal response?
The substitution effect of a change in wage rate on a firm's demand for labor input will be more significant
a. the greater the change in output. b. the more sharply curved are the firm's isoquants. c. the flatter are the firm's isoquants. d. the larger the quantity of labor employed.
If you and your friends are still looking for a job eighteen months after graduation, even after lowering your expectations, you're probably living in the business cycle phase of a
a. recession b. peak c. boom d. recovery e. prosperity