What assumptions do economists make about the time period known as the short run?
What will be an ideal response?
(1.) The firm is operating under a fixed scale of production (some factor is fixed).
(2.) Firms can neither enter nor exit the industry.
Economics
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As the ________ increases, ________
A) quantity demanded of a good; its price increases B) quantity demanded of a good; its price decreases C) price of a good; its quantity demanded increases D) price of a good; its quantity demanded decreases
Economics
Assume that the interest rate in a foreign country is 7% and that the foreign currency is expected to depreciate by 3% during the year. For each dollar that a U.S. resident invests in foreign bonds, he/she can expect to get back an approximate total of
A) $.93. B) $.96. C) $1.04. D) $1.07. E) $1.10.
Economics