Suppose that Danita owns a cupcake bakery. In the short run, at least one of her inputs is fixed. Provide one or two examples of the types of inputs that could be fixed in the short run
Danita's store size is likely to be fixed in the short run. Depending on how quickly she can purchase or lease additional capital such as mixers and ovens, some of her capital may be fixed in the short run. Danita can likely order more cupcake ingredients and hire more workers easily, so these types of inputs are likely to be variable in the short run.
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Assume that markets clear. If in the labor market there is
a. an excess supply of labor, wages will rise b. an excess demand for labor, wages will fall c. an excess demand for labor, wages will rise d. an excess supply of labor, wages stay constant e. a decline in labor demand, wages will rise
Which statement is true?
A. OPEC is responsible for over 80 percent of the world's oil exports. B. In early March 2008, when the price of a barrel of oil passed the $100 mark, economists thought OPEC with their market power might increase production to prevent further increases. C. OPEC has lowered the price of oil by holding down output.
Suppose you are a mortgage lender. Your goal is to set your rates in such a way as to maximize your profits. How would you use what you know about inflation rates and nominal and real interest rates to determine what rate to charge?
What will be an ideal response?
The vertical part of the aggregate supply curve is the _____ range.
Fill in the blank(s) with the appropriate word(s).