In the short run,
A. all of the firm’s input quantities, including plant size, become adjustable.
B. firms are not constrained by past decisions.
C. firms have relatively little opportunity to change production processes.
D. all of the firm’s current commitments come to an end.
Answer: C
You might also like to view...
Gomer decides to spend an hour playing basketball rather than studying. His opportunity cost is:
a. nothing, because he enjoys playing basketball more than studying. b. the increase in skill he obtains from playing basketball for that hour. c. the benefit to his grades from studying for an hour. d. nothing, because he had a free pass into the sports complex to play basketball.
The quantity of money that households and businesses will demand
a. increases if income falls but decreases if interest rates rise. b. increases if income falls and increases if interest rates rise. c. decreases if income falls but increases if interest rates rise. d. decreases if income falls and decreases if interest rates rise.
What is the opportunity cost of moving from point B to point A?
Hypothetical Production Schedule for Two-Product Economy
Which of the following incurs a primarily nonpecuniary cost?
a. a factory blocking out the sound of birds b. a truck smashing through a fence c. a new building site that requires purchasing someone’s land d. a chemical spill that destroys a driveway