Explain why some costs are considered to be variable and some fixed. How does time enter into the definition?
Some factors cannot be adjusted quickly in the short run. Costs associated with these factors are called fixed costs. Variable costs are costs incurred through the utilization of factors that can be readily varied in the short term (such as raw materials or labor). Variable costs are costs that increase as output increases, and decrease as output decreases. All costs are variable in the long run when firms have sufficient time to vary all factors of production.
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Explain why even owners of capital that cannot be moved can avoid more of the economic stability loss due to fixed exchange rates when Norway's economy is open to capital flows
What will be an ideal response?
A job loser is an individual
A) in the labor force whose employment was involuntarily terminated. B) who used to work full time but left the labor force and has now reentered it looking for a job. C) in the labor force who quits voluntarily. D) who has never held a full-time job lasting two weeks or longer but is now seeking employment.
Assume the price of widgets increases by 22 percent and the quantity supplied increases by 27 percent as a result. The elasticity of supply coefficient is: a. greater than 1, implying that widgets are normal goods. b. less than 1, implying that widgets are inferior goods. c. greater than 1, implying that supply is elastic
d. greater than 1, implying that supply is inelastic.
The marginal product of labor is defined as:
A. the additional output produced by the last ?L units of labor hired. B. the amount of output divided by the amount of capital used to produce the output. C. the amount of output produced multiplied by the last ?L units of labor hired. D. the amount of output divided by the number of workers employed.