The difference between long-term and short-term profit maximization is that, in the short term,
A. businesses focus on achieving as much profit as they can, given that they can vary all inputs, even to the point of shutting down.
B. businesses focus on achieving as much profit as they can, but in the long term, businesses always eventually shut down.
C. businesses focus on achieving as much profit as they can, given that fixed costs cannot be changed.
D. businesses are not able to maximize profits because they can vary all of their inputs, making the calculations too complicated.
Answer: C
You might also like to view...
Variable spending arising as part of the operation and maintenance of abatement processes is known as
a. capital costs b. operating costs c. fixed costs d. implicit costs
An increase in the money supply is likely to reduce
A. interest rates. B. nominal income. C. the general price level. D. money demand.
Which of the following observations regarding the Gini coefficient (G) is incorrect?
a. If G is one, the Lorenz curve would overlap the line of perfect income equality. b. If G is zero, it represents perfect income equality c. If G is one, it represents perfect income inequality d. The closer G is to 1 the greater the degree of income inequality
Any factor that increases resource availability causes a(n)
a. increase in AD b. decrease in AD c. increase in AS d. decrease in AS e. movement to the right along the existing AS curve