Explain why labor might not always be a variable input
What will be an ideal response?
In the real world, units of labor are not identical. Many firms employ highly specialized units of labor. Their supply might be very inelastic so that the firm cannot easily increase the amount of this type of labor.
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A company's credit risk can be high even if it is solvent and well-capitalized, if there is:
a. Actually, it is impossible for a solvent, well-capitalized company to have a high credit risk. b. Insufficient cash earnings and/or insufficient access to the credit markets. c. High expected inflation. d. Political and central bank instability in the nation(s) where it operates. e. A high real, risk-free interest rate.
Advertising that is intended to alter a consumer's tastes and preferences and induce the customer to purchase a particular product is
A) persuasive advertising. B) educational advertising. C) informational advertising. D) directional advertising.