Which of the following most accurately describes the long-run period?
a. The long run is a period of time in which a firm is unable to vary some of its factors of production
b. In the long run, the firm is able to expand output by utilizing additional workers and raw materials, but not physical capital.
c. The long run is of sufficient length to allow a firm to alter its plant capacity and all other factors of production.
d. The long run is of sufficient length to allow a firm to transform economic losses into economic profits.
c
You might also like to view...
If a product is narrowly defined, it is likely to
A) have many substitutes and therefore its demand is elastic. B) have few substitutes, and therefore its demand is less elastic. C) be unique, and therefore its demand is inelastic. D) be unique and have many substitutes. E) have a larger proportion of income spent on it.
An inferior good is one that consumers buy in smaller quantities when the price of that good rises.
Answer the following statement true (T) or false (F)
When demand for money is unstable,
A) a constant interest-rate policy will be superior to a policy of constant money-supply growth. B) constant money-supply growth will be superior to a countercyclical monetary policy. C) procyclical monetary policy would be needed to keep the interest rate constant. D) Both A and C are correct.
In the events of the housing bubble collapsing, once the housing prices stopped increasing refinancing:
A. was no longer an option, and a wave of foreclosures occurred. B. no longer allowed people to borrow cash on the new value of their home, and spending slowed. C. became less popular, and people's consumption overall dropped. D. became more popular, and people's consumption accelerated overall.