When a business firm makes an investment in physical capital, that investment is subject to _____.
a. state and local government incentives
b. economic output and productivity
c. political orientated incentives
d. the discipline of the market
d. the discipline of the market
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________ choose the quantities of factors of production to hire and ________ choose the quantities of goods and services to produce
A) Markets; markets B) Firms; households C) Factor markets; goods markets D) Entrepreneurs; firms E) Firms; firms
Which of the following are assets of commercial banks?
i. reserves ii. loans iii. deposits A) i only B) ii only C) i and ii D) ii and iii E) i, ii, and iii
Hanak Products, a perfectly competitive firm, is experiencing profitability. Given this information, what will Hanak Products do?
a. In the short run, the firm will improve product quality. b. In the long run, the firm will create quality controls. c. In the short run, the firm will reduce its staff size. d. In the long run, the firm will increase production.
In the ___________, total production keeps growing, but by smaller and smaller amounts.
Fill in the blank(s) with the appropriate word(s).