Refer to Scenario 10.7. How many ink pads will be produced to maximize revenue?

Using the economic way of thinking, what do a pencil, stick of gum, and balloon have in common?

A) Each is produced by a single person. B) Each is produced by a small number of people. C) Given the state of modern technology and high-speed processing, each can soon be produced without any human intervention at all. D) The production of any one of the goods mentioned above requires the voluntary cooperation of millions of producers and traders.

Which of the following statements is correct regarding a firm's decision-making?

a. The decision to shut down and the decision to exit are both short-run decisions. b. The decision to shut down and the decision to exit are both long-run decisions. c. The decision to shut down is a short-run decision, whereas the decision to exit is a long-run decision. d. The decision to exit is a short-run decision, whereas the decision to shut down is a long-run decision.