Economists usually assume that ________ is a fixed input in the ________ run.
A. labor; short
B. capital; short
C. capital; long
D. labor; long
Answer: B
You might also like to view...
The nominal interest rate plus the inflation rate equals the real interest rate
Indicate whether the statement is true or false
Most people buy insurance because they
a. are risk lovers b. enjoy the gamble c. are risk neutral d. are risk averse
The unemployment rate may:
A. understate the effect of a recession on employment because some leave the labor force. B. overstate the effect of a recession on employment because some leave the labor force. C. understate the effect of a recession on employment because many enter the labor force. D. overstate the effect of a recession on employment because many enter the labor force.
Suppose that an industry is characterized by a few firms and price leadership. We would expect that:
A. price would equal marginal cost. B. price would equal average total cost. C. price would exceed both marginal cost and average total cost. D. marginal revenue would exceed marginal cost.