The short run is a period of time:
A. in which a firm uses at least one fixed input.
B. that is long enough to permit changes in the firm's plant size.
C. in which production occurs within one year.
D. in which production occurs within six months.
Answer: A
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An increase in the demand for chicken is predicted to ________ the real wage and ________ employment of unskilled workers in a poultry processing plant.
A. increase; increase B. decrease; decrease C. increase; not change D. increase; decrease
The effect of trade on income distribution
A) can be significant in the sort run. B) is positive for all segments of an economy. C) is insignificant in the short run. D) implies that there are no real gains from trade. E) refutes the model of comparative advantage.
If a firm wants to maximize profits, it should hire workers up to the point at which
A) total factor cost = total revenue. B) marginal factor cost = marginal revenue product. C) marginal utility = marginal cost. D) total social benefit = total social costs.
The broadest measure of the price level that includes all final goods and services is
A) the consumer price index. B) the producer price index. C) the wholesale price index. D) the GDP deflator.