The short run is characterized by:
A. plenty of time for firms to either enter or leave the industry.
B. increasing but not diminishing returns.
C. fixed plant capacity.
D. zero fixed costs.
Answer: C
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Refer to Figure 2-2. If Vidalia chooses to produce 80 dozen roses, how many orchids can it produce to maximize production?
A) 24 dozen orchids B) 48 dozen orchids C) 60 dozen orchids D) 74 dozen orchids
The observation that the money supply is procyclical and leading the level of aggregate economic theory is most closely associated with
A) Lucas and Friedman. B) Friedman and Schwartz. C) Kydland and Prescott. D) David Runkle.
The federal government’s research and experimentation plan is a(n) _____________ to stimulate private sector investment in research.
a. economic prize b. subsidy c. collaboration d. tax credit
Suppose earnings are given by E = $60 + $7(24 ? L), where E is earnings and L is the hours of leisure. What is the maximum this worker can earn in three (3) days?
A. $228 B. $684 C. $417 D. $519