The basic difference between the short run and the long run is that:
A. all costs are fixed in the short run, but all costs are variable in the long run.
B. the law of diminishing returns applies in the long run but not in the short run.
C. at least one resource is fixed in the short run, while all resources are variable in the long
run.
D. economies of scale may be present in the short run but not in the long run.
Answer: C
You might also like to view...
As prices in Zimbabwe began to rise:
A. Mugabe was able to pay bribes with the new money and then started the process of reducing inflation. B. people immediately lost faith in the Zimbabwean dollar, causing its value to plummet to zero. C. people updated their inflation expectations so that future increases in the money supply were impossible. D. the government had to print even more money to continue to buy just as many goods as it did before.
The key difference between a forward and a futures contract is:
A. a forward contract is bought and sold on organized exchanges. B. a forward contract is customized where a futures contract is not. C. only the forward contracts have settlement dates. D. the amount of time involved.
Why don't we see firms tie in the sales of fish filets with the sales of pencils?
A) because the demands for these two goods are positively correlated B) because the demands for these two goods are negatively correlated C) because the demands for these two goods are independent D) It violates the Clean Food Act of 1908.
If the U.S. demand for German goods increases, then
A. the U.S. current account deficit with Germany will improve. B. Germany will experience currency devaluation. C. the euro will appreciate in value against the U.S. dollar. D. the euro will depreciate in value against the U.S. dollar.