In the process of long-term profit maximization, the business makes decisions under the assumption that it can
A. not change any of its costs.
B. change only short-term costs.
C. vary all the inputs.
D. change only long-term costs.
Answer: C
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Suppose that nominal interest rates double. As a result, the quantity of money doubles as well
Indicate whether the statement is true or false
Assume that you have data on a firm's average fixed cost and average variable cost for various levels of output and you are asked to calculate the total variable cost and total cost of the firm
Would this be enough information to perform this calculation? Explain
In perfect competition, an increase in the firm’s fixed costs lead to
A. a drop in the firm’s output. B. an increase in the firm’s output. C. an increase in its total costs. D. a drop in industry output.
Andrea Burris lost her job in a company layoff 5 months ago. She would take a job if one was offered, but she has given up looking for work until the economy improves. She is:
a. a member of the civilian labor force who is employed. b. a member of the civilian labor force who is unemployed. c. a member of the civilian labor force who is underemployed. d. a discouraged worker who is not a member of the labor force. e. now structurally unemployable.