The long run is
A. Approximately one year.
B. A period long enough for all inputs to be variable.
C. A period longer than one year.
D. The period required to produce a unit of the firm's output.
Answer: B
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A product is produced in a monopolistically competitive industry with scale economies. If this industry exists in two countries, and these two countries engage in trade with each other, then we would expect
A) each country will export different varieties of the product to the other. B) the country in which the price of the product is lower will export the product. C) the country with a relative abundance of the factor of production in which production of the product is intensive will export this product. D) neither country will export this product since there is no comparative advantage. E) the countries will trade only with other nations they are not in competition with.
Some economists say that "full employment" exists in an economy when:
a. cyclical unemployment is 2 percent. b. cyclical unemployment is 4 to 6 percent. c. frictional unemployment is zero. d. the unemployment rate is 4 to 7 percent. e. the natural unemployment rate is zero.
Immigration of workers into the United States is often an important source of
a. increases in the demand for labor in the United States. b. decreases in the demand for labor in the United States. c. increases in the supply of labor in the United States. d. decreases in the supply of labor in the United States.
Average fixed cost:
A. initially declines, reaches a minimum, and then begins to increase as output increases. B. keeps constant as output is expanded. C. declines continuously as output is expanded. D. increases continuously as output increases.