The short run is a period of time in which
A) the quantity of at least one factor of production is fixed.
B) the amount of output is fixed.
C) prices and wages are fixed.
D) nothing the firm does can be altered.
A
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The good news for unions and their members is that union workers earn about 20% more than nonunion workers, even after adjusting for factors such as years of work experience and education level. What is the bad news?
a. In the 1930s, union members earned 37% more than nonunion members, after adjusting for inflation. b. Most unionized companies were driven out of business, leaving only about 5% of U.S. workers in unions. c. The percentage of U.S. workers who belong to labor unions has declined steadily for 50 years. d. As union membership rises, the wage gap will shrink.
Economists use the term "utility" to refer to the usefulness of a good or service, and so consequently aesthetic products like art, music, and vacations have no utility
Indicate whether the statement is true or false
Which of the following is false?
A. Profit is maximized when MR = MC for both monopolies and perfect competition firms B. Both monopolies and perfect competition firms earn zero profit in the long run C. At equilibrium, price is higher than marginal cost for monopolies but not for competitive firms D. Monopolies profit maximize and perfect competitive firms output maximize
Exhibit 17-2 Aggregate demand and aggregate supply curves
As shown in Exhibit 17-2, if people behave according to adaptive expectations theory, an increase in the aggregate demand curve from AD1 to AD2 will cause the price level to move:
A. directly from 100 to 110 and then remain at 110. B. directly from 100 to 105 and then remain at 105. C. from 100 to 105 initially and then eventually move back to 100. D. from 100 to 105 initially and then eventually move to 110.