In the long run, a firm can vary

A) its capital but not its labor.
B) its labor but not its capital.
C) both its labor and its capital.
D) neither its labor nor its capital.

C

Economics

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Describe the effects of an oil price shock in a Keynesian model; why are such supply shocks difficult to handle using macroeconomic stabilization policies?

What will be an ideal response?

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According to the quantity theory of money, inflation results when excessive paper money is in circulation

Indicate whether the statement is true or false

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