For a given change in demand:
a. Quantity will change relatively more in the long run than the short run.
b. Quantity will change relatively more in the short run than the long run.
c. Price will change relatively more in the long run than the short run
d. Both b. and c. are true.
a
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When local governments ignore all other considerations and award cable TV franchises to the firms that offer the highest money bids, they
A) discriminate against the poor. B) encourage corruption. C) introduce delay into the system but increase its efficiency. D) reduce the likelihood of illegal bribes. E) increase the likelihood the winning firm will be incompetent.
[Appendix; Advanced Material] If airlines found that the number of no-shows starts to increase, then its policy for optimal overbooking would tend to:
a. make them reduce the amount of overbooking. b. cause them to increase the amount of overbooking. c. let them keep the same amount of overbooking.
"Excludability" means that:
A. buyers can restrict other buyers from making purchases in that market. B. government can prevent consumers from buying the good. C. when one person buys a good, it is not available for others to buy. D. sellers can restrict the benefits of a good to those who pay for it.
If a firm cannot cover its variable costs, it will
A. operate in the short run and stay in business in the long run. B. operate in the short run and go out of business in the long run. C. shut down in the short run and stay in business in the long run. D. shut down in the short run and go out of business in the long run.