If a firm's marginal cost curve is very steep in the short-term, but much flatter in the long-term, all else equal a ________-term forecast is likely to be more valuable than a ________-term forecast.
A) short; long
B) long; extended
C) short; extended
D) long; short
D) long; short
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An increase in supply will have what effect on equilibrium price and quantity?
A. Price will increase; quantity will decrease. B. Price will decrease; quantity will increase. C. Both price and quantity will increase. D. Both price and quantity will decrease.
________ is the value of a good minus the price paid for it summed over the quantity bought
A) Producer surplus B) Consumer surplus C) Surplus D) Shortage
Consider the two graphs above. Suppose there is an increase in the real interest rate. This would ________ the desired level of the capital stock, as depicted in graph ________
A) increase; B B) increase; A C) decrease; B D) decrease; A
In the classical model, and increase in tax on firms that hired labor would
a. decrease labor demand and the real wage and increase output. b. decrease labor supply, increase the real wage, and decrease output. c. decrease labor demand, decrease the real wage, and decrease output. d. reduce real wages and increase output.