In the long run, which of the following is true?
A. Profit effects are larger than cost effects.
B. Cost effects offset price effects.
C. Cost effects are larger than profit effects.
D. None of the choices are correct.
Answer: B
Economics
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Any combination of two goods that lies beyond the production possibilities frontier
A) is currently impossible to produce. B) is currently possible to produce, but not worth trying. C) represents economic waste. D) represents a more efficient combination of output than anything lying on the frontier.
Economics
When the interest rate increases, the cost of financing investments ______ and _____ investment projects will be undertaken.
a) increases; more b) increases; fewer c) decreases; more d) decreases; fewer
Economics