The long run is distinguished from the short run because only in the long run
A) output prices can vary.
B) factor of production prices can vary.
C) the quantities of all factors of production can be varied.
D) the firm no longer maximizes its profit.
C
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Suppose a firm has the following total cost function: TC = 100 + 4q2. What is the minimum price necessary for the firm to earn profit? Below what price will the firm shut down in the short run?
What will be an ideal response?
An advance in technology in the production of good X causes
A) a rightward shift in the supply curve for good X. B) a leftward shift in the supply curve for good X. C) the supply curve for good X to change from upward sloping to vertical. D) the supply curve for good X to change from vertical to upward sloping.
What term is defined as the change in the amount consumers will buy because they can buy a different product instead?
a. inferior goods b. normal goods c. income effect d. substitution effect
A temporary decrease in the price of oil would be considered a:
A. long-run supply shock. B. demand shock. C. short-run supply shock. D. The changing price of oil would not affect any of these.