The long run is a period of:
A. at least one year.
B. sufficient length to allow a firm to expand output by hiring additional workers.
C. sufficient length to allow a firm to alter its plant size and capacity and all other factors of production.
D. sufficient length to allow a firm to transform economic losses into economic profits by hiring better workers.
Answer: C
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If the final expressions in a present value equation used to calculate the price of a bond you are considering buying are "[$50 / (1 + .08)3] + [$500 / (1 + .08)3]", which of the following is correct?
A) The coupon is $50, the interest rate you need is 1.08 percent, and the coupon will mature in 3 years. B) The face value is $50, the interest rate you need is 8 percent, and the coupon will mature in 3 years. C) The face value is $500, the coupon is $50, and the coupon will mature in 3 years. D) The face value is $500, the interest rate you need is 3 percent, and the coupon will mature in 8 years.
In game theory, an example of a payoff could be:
A. being the first mover in a game. B. sharing information with a select few that others aren't privy to. C. monetary gains made by a player. D. giving an advantage to only one player.
A real variable is one that is
a. not adjusted for the dollar's changing value b. measured in current dollars c. adjusted for the dollar's changing value d. not measured in terms of goods and services e. not adjusted for changes in the price level
If the AD and AS curves intersect in the upward-sloping segment of the AS curve, and then taxes increase, we should expect to see the price level
a. rise and real GDP to rise b. rise and real GDP to fall c. rise and the unemployment rate to fall d. fall and real GDP to rise e. fall and the unemployment rate to rise