For many firms, their input costs, such as wages and other contracted costs, are ______.
a. highly variable in the short run
b. relatively constant in the long run
c. quick to adjust in the short run
d. relatively constant in the short run
d. relatively constant in the short run
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If the graph shown represents Stella's budget constraint, and she has income of $48 to spend on these two items, Stella could choose which consumption bundle?
A. One pair of earrings and seven hairbands
B. Four pairs of earrings and eight hairbands
C. Three pairs of earrings and six hairbands
D. Two pairs of earrings and four hairbands
In order for Ethiopia to increase its future economic growth, it must choose a point that is:
a. below its production possibilities curve. b. further along on its production possibilities curve toward the capital goods axis. c. further along on its production possibilities curve toward the consumption goods axis. d. further along on its production possibilities curve away from the population axis. e. above its production possibilities curve.
Protection of an infant industry should be withdrawn once that industry:
a. charges the same price as foreign competitors. b. goes public on the stock exchange. c. raises a large amount of sales revenue. d. achieves sufficient size to compete with foreign firms. e. earns enough profit as a result of the subsidies to remain in business.
In a perfectly competitive market, a technological advance allows all firms to earn higher economic profits in the long run
a. True. b. False.