A short-run cost function assumes that
A. all inputs are fixed in supply.
B. at least one input is fixed in supply.
C. the level of output is fixed.
D. both a and b
E. both b and c
Answer: B
Economics
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The total fixed cost curve:
a. varies with the quantity of inputs used. b. decreases with output. c. increases with output. d. remains constant regardless of output.
Economics
If the interest rate rises, a profit-maximizing firm will tend to
a. invest in more projects (such as new plants) with payoffs in the future. b. invest in fewer projects with payoffs in the future. c. increase both current output and future output. d. reduce both current output and future output.
Economics