The short run for the industry is defined as a period
A. too brief for new firms to enter the industry.
B. too brief for old firms to leave the industry.
C. in which the number of firms in the industry is fixed.
D. All of the responses are correct.
Answer: D
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Which of the following is not a contribution of small firms to development:
a. permit the economy to adjust to recession by hiring those laid off in the formal sector b. create employment c. source of training and skills d. use little capital e. all of the above are contributions of small firms
The primary effect of an inheritance tax is _____
a. to encourage the liquidation of assets b. provide significant government revenue c. encourage capital formation d. the encouragement of pre-death asset transfers
Which of the following is TRUE about firms organized along functional lines?
a. In functional organizations workers develop functional expertise b. Workers find it difficult to share information within their division c. They inhibit the exploitation of economies of scale d. All of the above
The term that refers to the price level rising at a low rate is
a. hidden inflation b. creeping inflation c. repressed inflation d. disinflation e. deflation