By producing less, a firm can reduce
A) its fixed costs and its variable costs.
B) its fixed costs but not its variable costs.
C) its variable costs but not its fixed costs.
D) neither its variable costs nor its fixed costs.
C
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How do the Fed's actions influence the inflation rate and how long does it take for inflation to respond to the Fed's policy changes?
What will be an ideal response?
Oligopolists that follow the price leadership model:
A. are engaging in implicit, but not explicit, price fixing. B. are violating antitrust laws. C. have chosen to follow the grim-trigger strategy. D. will be unable to overcome the duopolists' dilemma because firms will have an incentive to underprice the firm that is the price leader.
In the United States, a patent lasts
A. 20 years. B. 14 years. C. forever. D. 7 years.
The idea that because of scarcity, producing more of one good or service means producing less of another good or service refers to the economic concept of
A) trade-off. B) equity. C) efficiency. D) optimization.