In the long run,
a. all the firm’s resources are variable.
b. some of the firm’s resources are variable.
c. none of the firm’s resources are variable.
d. the time period exceeds one year.
a. all the firm’s resources are variable.
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Suppose the United States' production possibility frontier was flatter to the widget axis, whereas Germany's was flatter to the butter axis. We now learn that the German mark sharply depreciates against the U.S. dollar. We now know that
A) the United States has no comparative advantage B) Germany has a comparative advantage in butter. C) the United States has a comparative advantage in butter. D) Germany has a comparative advantage in widgets. E) Germany has lost its comparative advantage.
When income increases by 1%, the quantity demanded of a good decreases by 2%. What is the income elasticity of the good? Is the good normal or inferior? Why?
What will be an ideal response?
In the long run, a monopolistically competitive firm will
a. produce a greater variety of goods than do firms in other market structures b. produce a greater output level than would a perfectly competitive firm c. produce where price equals average total cost d. earn an economic profit e. suffer a loss because of its advertising budget
Economist George Borjas has estimated the net benefits (+)/costs (-) to the United States from labor immigration to be approximately:
a. +10% of GDP. b. -5% of GDP. c. +0.1% of GDP. d. 0.5% capital loses and 0.8% labor gains.