Which of the following is a long-run adjustment?
A. A firm hires two new workers.
B. The number of professional baseball teams increases by two.
C. GM buys more steel for its auto plants in Michigan.
D. A farmer buys twice the usual amount of fertilizer.
Answer: B
You might also like to view...
State how shifts in the aggregate demand curve can explain the movement of real GDP around potential GDP
What will be an ideal response?
A firm is likely to pay higher efficiency wages when:
A) it is easy to monitor workers. B) it is not easy to monitor workers. C) workers do not have a tendency to shirk at work. D) the minimum wages are set above the equilibrium wage rate.
An example of how GNP accounts for services provided by foreign-owned capital (and GDP does not) is
A) earnings of a Spanish factory with British owners counts only in Spain's GDP. B) earnings of a Spanish factory with British owners counts only in Britain's GNP. C) earnings of a Spanish factory counts in Spain's GNP but are part of Britain's GDP. D) earnings of a Spanish factory counts in Spain's GDP but are part of Britain's GNP. E) earnings of a Spanish factory counts in Spain's GNP but not in Britain's GDP or GNP.
The RBV perspective predicts
a. firm's profitability differs only if they are in different industries b. firms within an industry are equally profitable c. firm's profitability within industries varies widely d. Only A&B