Which of the following is a common long-run response for a firm that is making a profit in the short run?
a. It will invest more resources in other firms.
b. It will cut back the firm’s resources.
c. It will invest more resources in the profitable process.
d. It will keep allocation of the firm’s resources the same.
c. It will invest more resources in the profitable process.
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Assume a customer of natural gas is negotiating with his supplier over the telephone. At the time prices of all the supplier's competitors are precisely the same
The customer tells the supplier that if he raises his price even one penny he will walk away. What does the perceived demand curve for natural gas look like for this customer? Why?
If a monopolist produces to a point at which marginal revenue is less than marginal cost then
A) profits are being maximized. B) profits will always be negative. C) the incremental cost of producing the last unit exceeds the incremental revenue. D) the incremental cost of producing the last unit is less than the incremental revenue.
If you know that with 8 units of output, average fixed cost is $40 and average variable cost is $25, then total cost at this output level is:
a. $320 b. $200 c. $520 d. $1000
Which one of the following persons would be considered unemployed?
A. a person not working who has given up searching for a job B. a part-time worker looking for a full-time job C. a construction worker who was laid off due to cold weather D. a full-time college student who is not a member of the labor force