In economics, what is the difference between the short run and the long run?
What will be an ideal response?
In economics, the short run refers to the period of time during which at least one of a firm's inputs is fixed. The long run refers to the period of time in which a firm can vary all its inputs, adopt new technology, and increase or decrease the size of its physical plant.
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The above figure shows the U.S. market for wheat. When there is no international trade, consumer surplus is equal to ________
A) area A + area B + area C B) area A C) area E + area F D) area B + area C + area D E) area A + area B + area C + area D
Firms operating in a perfectly competitive market have an incentive to advertise their products since this will increase the demand for their products
a. True b. False Indicate whether the statement is true or false
The table below shows how total donations, average donations, total labor costs and average labor costs vary depending on the number of employees State U hires for its fundraising activities.Number ofEmployeesTotal DonationsAverage DonationsTotal Labor CostsAverage Labor Costs1$30,000 $8,0002$42,426 $17,000 3 $17,321$27,000 4$60,000 $9,5005 $13,416$50,000 The marginal cost of the 4th employee is:
A. $11,000. B. $13,000. C. $10,750. D. $9,500.
Economists who favor policy activism argue that the United States economy is NOT always in equilibrium because
A. the national debt is too large. B. the markets are over regulated. C. wage and price rigidities exist. D. the Federal Reserve's monetary policy is too restrictive.