The long run:
a. is a period long enough for every input except plant size to be varied.
b. is a period in which there are no fixed costs
c. is typically a period of two years.
d. is all of the above.
b
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Suppose a new study highlights the health benefits of eating bacon. At the same time, suppose the cost of producing bacon falls. Given these changes, you should expect to see:
A. an increase in both the equilibrium price and quantity of bacon. B. an increase in the equilibrium price of bacon, but it's hard to say what will happen to the equilibrium quantity. C. an increase in the equilibrium quantity of bacon, but it's hard to say what will happen to the equilibrium price. D. a decrease in the equilibrium price of bacon, but it's hard to say what will happen to the equilibrium quantity.
Which interest rate is typically the lowest?
A) 3-month Treasury bills B) 2-year Treasury notes C) 10-year Treasury bonds D) 30-year Treasury bonds
If a tax system is progressive, then
A) the average and the marginal tax rates are equal. B) the marginal tax rate is greater than the average tax rate as income rises. C) the marginal tax rate is lower than the average tax rate as income rises. D) the average tax rate is constant, but the dollar amount paid in taxes increases as income increases.
While working under uncertain conditions, it is better to
a. Maximize total profits b. Minimize error costs c. Maximize error costs d. Minimize profits