Economists have said that deregulation of the electric utility industry might lead to increased prices in the short run, but prices will fall in the long run. In this context:
a. the short run means the middle of next year.
b. the short run means the period after all adjustments have been made, and the quantities of all resources have been varied as necessary.
c. the long run means after all adjustments have been made, the quantities of all resources have been varied as necessary, and new market entrants begin producing electricity.
d. the short run means the period after new firms begin producing electricity.
e. the long run means approximately ten years.
c
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Which of the following programs supplement the income of only low-income working families?
a. Supplemental Security b. Social Security c. Earned Income Tax Credit d. Temporary Assistance for Needy Families
The U.S. trade deficits of the 1980s and 1990s may represent a problem because they will require
a. higher consumption in the future in order to increase imports. b. lower consumption in the future in order to repay interest and principal to foreigners. c. lower consumption in the future in order to finance increased investment. d. higher budget deficits in the future in order to increase the trade surplus.