In the short run, all costs are fixed
a. True
b. False
B
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The mountainous terrain of a particular town allows its inhabitants to produce only coffee or eucalyptus oil. An increase in the opportunities for workers employed in coffee plantations is likely to:
a. shift the labor demand curve for the eucalyptus industry leftward. b. shift the labor demand curve for the eucalyptus industry rightward. c. shift the labor supply curve for the eucalyptus oil industry leftward. d. shift the labor supply curve for the eucalyptus oil industry rightward.
Explain why insurance companies may find themselves at times having to refuse business.
What will be an ideal response?
As more firms enter an industry:
A. prices rise. B. economic profits decrease. C. accounting profits increase. D. None of the statements associated with this question are correct.
If supply and demand both simultaneously increase
A) the market clearing price definitely rises, and the equilibrium quantity definitely falls. B) the market clearing price definitely rises, and the effect on the equilibrium quantity is indeterminate. C) the market clearing price definitely falls, and the effect on the equilibrium quantity is indeterminate. D) the effect on the market clearing price is indeterminate, and the equilibrium quantity definitely rises.