The short run is
A. the period of time in which the firm can vary its rate of output.
B. up to three years.
C. the period of time in which the firm cannot change its use of at least one input.
D. a year or less.
Answer: C
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Suppose there is an unusually large crop of apples this year. How might this affect the market for apples?
A. The demand would increase, increasing both equilibrium price and quantity. B. The supply would increase, decreasing equilibrium price and increasing equilibrium quantity. C. The demand would decrease, decreasing both equilibrium price and quantity. D. The supply would decrease, increasing equilibrium price and decreasing equilibrium quantity.
While waiting in line to buy two tacos at 80 cents each and a medium drink for 90 cents, Kayla notices that the restaurant has a value meal containing three tacos and a medium drink all for $3 . For Kayla, the marginal cost of the third taco would be
a. zero. b. 50 cents. c. 80 cents. d. $1.
Automobiles create externalities because they are expensive and not everyone can afford the car they want.
Answer the following statement true (T) or false (F)
The ways to address agency costs include all EXCEPT
a. running background checks on prospective employees b. requiring employees to punch time clocks c. instituting longer work days d. replacing closed offices with cubical office spaces