In the long run
A) the firm's fixed costs are greater than its fixed costs in the short run.
B) all of the firm's costs are explicit costs; there are no implicit costs of production.
C) the firm is more profitable than it is in the short run.
D) all of the firm's costs are variable costs.
Answer: D
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Economics is the study of the ________ people make to attain their goals, given their ________ resources
A) decisions; household B) choices; scarce C) purchases; unlimited D) income; available
Answer the following statements true (T) or false (F)
1) The present value of a bond is the only price that buyers are willing to spend on the bond and the only price sellers are willing to accept for the bond. 2) Junk bonds sell for higher prices than non-junk bonds. 3) The present value of a bond is the only price that buyers are willing to spend on the bond and the only price sellers are willing to acce244) A profit-maximizing manager should always calculate the net present value and use the net present value rule to evaluate any business decision that involves the payment or receipt of money at different times in the future.pt for the bond. 4) Profit-maximizing managers should make efforts to receive profits in future and incur costs in the present. 5) Interest paid of debt-financed investments is referred to as a tax shield.
When a few rival groups spend money in competition for a license that grants them a monopoly for the provision of cable TV for an area, economists label this activity
a. perfect competition. b. oligopoly. c. monopolistic competition. d. rent seeking.
Which one of the following is least likely to influence the investment choices of decision makers?
a. the pure interest yield b. the expectation of profit c. the risk associated with the investment d. the general level of prices