What's true about both the short-run and long-run in terms of production and cost analysis?
a. In the short-run, one or more of the resources are fixed
b. In the long-run, all the factors are variable
c. The time horizon determines whether or not an input variable is fixed or not
d. The law of diminishing returns is based in part on some factors of production being fixed, as they are in the short run.
e. All of the above
e
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Deficit financing
A) is when the government adjusts taxes to raise money to pay for government projects. B) is the mechanism behind the Laffer curve. C) is how the automatic stabilizers work. D) is when discretionary fiscal policy leads to spending more than is collected in taxes.
An efficient customer sorting rule is one in which
a. customers with high willingness to pay secure the discounted goods b. customers are rationed randomly between the discounted and full price goods c. no customer purchase below her willingness to pay d. customers with the lowest willingness to pay secure the discount goods e. brand loyalty allows the incumbent to retain its regular customers
The 1996 replacement of Aid to Families with Dependent Children with Temporary Assistance for Needy Families constitutes the single biggest reform in the welfare system in the United States in the last 70 years
a. True b. False
Which of the following societies is the most likely to have a traditional economy?
A. United States B. the Inuit (native people of Northern Canada) C. Cuba under Castro's rule D. modern-day Hong Kong