In a dynamic context, firms concentrate on:
A. long-run customers.
B. short-run customers.
C. short-run profit.
D. long-run profit.
Answer: D
You might also like to view...
Which of the following problems best describes what may occur when Dixie hires an attorney to help in her child-custody suit?
a. the winner's curse b. a signaling problem c. a principal-agent problem d. an adverse selection problem e. unemployment
Which of the following statements are true regarding profit maximizing firms? a. They will attempt to maximize the difference between total revenues and total costs. b. They will use more of a resource as long as the MRC is greater than the MRP
c. They will only produce where MRP is positive and MRC is negative. d. none of the above.
The Fed increases reserves if it conducts open market
a. purchases or auctions term credit. b. purchases but not if it auctions term credit c. sales or auctions term credit d. sales but not if it auctions term credit
Recall the Application about how a simultaneous increase in the gasoline tax and decrease in the income tax affect gasoline consumption to answer the following question(s).Recall the Application. Suppose a tax on carbon that increases the price of gasoline is combined with a cut in income taxes to ensure that total tax revenue collected by the government does not change. This tax policy has no ________ but has ________.
A. income effect; a substitution effect. B. income effect; a positive real effect. C. no real effect on consumption; an income effect. D. substitution effect; an income effect.