ANSWER:
The correct answer is option d that is both the short run and long run (fact)
Question 12 Managers take account of __ _consequences of their behavior O the medium run the...
QUESTION 8 Data indicate that the Fisher effect: O a. holds in the short run. O b. holds in the long run. O c. holds in the long run and the short run. O d. doesn't hold in the short run but holds in the long run. QUESTION 9 If inflation in the United States is 4% per year and in the United Kingdom it is 8% per year, and interest rate in the United Kingdom is 6%, then the...
9 Firms that exhibit price-taking behavior a wait for other firms to set price, take it as given, and charge a higher price. b have outputs that are too small to infuence market price and thus take it as given. c take pricing behavior in their own hands. d are independently capable of setting price. 10 The short run is a a period of time in which at least one input cannot be varied b when firms are stuck with...
3. Strategic behavior refers to decisions made in the long run, but not the short run. True False. 4. Game theory is concerned with identifying optimal strategies in conflict situations. True. False
QUESTION 13 Every point on the long-run average cost curve is O on a short-run marginal cost curve. also a minimum point on a short-run average cost curve. O on a short-run average total cost curve. O on a short-run average variable cost curve. QUESTION 14 If total costs are $50,000 when 1000 units are produced, and total costs are $50,100 when 1001 units are produced, we can conclude that O average variable costs are $100. o marginal costs are...
What can managers do to avoid shutting down its business in the short run and what are some of the challenges faced by managers in the long run in a perfect market.
QUESTION 6 In the short run, a monopolistically competitive firm. O makes profits just as it does in the long run because of barriers to entry O will earn zero economic because of free entry and exit. O produces where MR-MC O produces where PEMC QUESTION 7 In the long run, a monopolistically competitive firm: O makes profits just as it does in the short run because of barriers to entry will earn zero economic because of free entry and...
Saved Question 20 (1 point) The long run: O is longer in industries that take longer to make adjustments in input levels. ) depends on Search documents and file names for text f production being considered. O is defined as however long it takes for a firm to vary all of its costs. O All of these are true. Saved Question 21 (1 point) Economists consider: O explicit and implicit costs. O the opportunity costs involved with a firm's decision....
If exports permanently decline, we would expect, in the medium run, O interest rates to increase and the rate of inflation to fall. o interest rates to fall and the rate of inflation to increase. O O a decline in both the rate of inflation and interest rates. no change in interest rates or the rate of inflation.
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Problem 3: AS-AD Relation Part II (20pts) AS-AD model can be used to explain how the economy transitions from the short-run to the medium-run 3a. (1pt) Can price be higher than expected price in the short run? 3b. (1pt) if P> Pe in the short run, what happens to Pe when we go from short-run to medium-run? 3c. (2pt) If Pe increases, would AD curve shift or would AS curve shift? How would it shift?...
Suppose that 1. The Elasticty of Imports in the USA in the short Run is 0.5 2. The Elasticity of Imports in Japan in the short Run is 0.3 3. The Elasticity of Imparts in the USA in the long Run is 0.8 According to the Elasticities approach to the Current Account Balance, if the Exchange Rate goes from Yen-51/100 to Yen-s1/50 O The Current Account Balance in the US will deteriorate in the short run and in the long...