What is the difference between the short run and the long run as economists define the two?
What will be an ideal response?
The short run is a period of time within which at least one resource is fixed. It could be a commitment for a rental lease, for example. The short run is also a period too short for new firms to enter the industry or for firms currently in the industry to exit. For the long-run period, all resources may vary; hence, all costs are variable costs. New firms may enter the industry and old firms may exit.
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Referring to a production possibilities curve and the goods being compared, depict the economic event. Millions of immigrants came to the United States in the second half of the 19th century to work on the transcontinental railroad (capital goods vs. consumer goods).
A. A movement from a point inside the curve to a point on or near the curve B. A movement from a point on or near the curve to a point inside the curve C. A shift in the entire curve to the right (outward) D. A shift in the entire curve to the left (inward)
Gasoline is considered a final good if it is sold by a
a. gasoline station to a bus company that operates a bus route between San Francisco and Los Angeles. b. pipeline operator to a gasoline station in San Francisco. c. gasoline station to a motorist in Los Angeles. d. All of the above are correct.
Refer to the diagram, where variable inputs of labor are being added to a constant amount of property resources. Marginal cost will be at a minimum for this firm when it is hiring:
A. Q 3 workers.
B. Q 2 workers.
C. Q 1 workers.
D. more than Q 3 workers.
Refer to the table. The equilibrium dollar price of luta is:
Answer the question on the basis of the following table, which indicates the dollar price of luta, the currency used in the hypothetical economy of Luteland:
A. $10.
B. $8.
C. $6.
D. $2.