Explain the difference between fixed costs in the short run and in the long run.
What will be an ideal response?
In the short run, at least one factor of production is fixed, so the firm must pay for this factor of production, and that cost is the firm's fixed cost. In the long run, there are no fixed factors of production, and consequently, there are no fixed costs.
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You buy new water skis and other new equipment for $2,500 and take a week off of your job, where you earn $1,000 a week, to go water skiing. The equipment you purchased was all produced in the United States. You think that the week was worth $4,000
As a result of your vacation, GDP changes by how much?
What are the four subcategories of investment expenditures?
What will be an ideal response?
Explain why the rates of death due to kidney disease and diabetes have slightly increased in the United States since 1981
What will be an ideal response?
For a firm producing in a perfectly competitive product market, the marginal revenue product of labor eventually
a. falls due to diminishing marginal returns to labor b. rises due to diminishing marginal returns to labor c. falls due to a falling product price d. falls due to a rising product price e. rises due to falling marginal productivity of labor