The short run is not the same length of time for all firms and industries because:
a. entrepreneurs have different tastes and preferences
b. the average product of labor varies across industries.
c. the life span of capital and the extent of capital specialization will vary across firms and industries.
d. The marginal product of capital begins to diminish at different levels of capital utilization across firms.
c
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Consumer surplus
A) is the difference between what a consumer pays for a good and the producer's cost. B) is the extra money a consumer pays above the minimum necessary price for the producer to produce it. C) is the difference between what a consumer would willingly pay for a good and the price actually paid. D) equals zero in the long run.
For any horizontal demand curve, the price elasticity of demand is:
A. equal to the price of the good. B. 1. C. infinite. D. 0.
Neo-mercantilism refers to an economic policy in which:
A) a country trades in manufactured goods with countries having similar per capita incomes. B) a country focuses on producing a good more efficiently than another nation. C) countries produce and export goods that required resources that were in great supply. D) countries promote a combination of protectionist policies and restrictions and domestic-industry subsidies. E) countries import goods that required resources that were in short supply.
From an economist's point of view, zero pollution is always preferable to some pollution.
Answer the following statement true (T) or false (F)