The long run for a business is a period of time
A) longer than a year.
B) when most inputs are variable.
C) when all inputs can change.
D) when labor is the only input used by the business.
Answer: C
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Which of the following statements best describes the 12 Federal Reserve Banks?
A. They are privately owned and privately controlled central banks whose basic goal is to provide an ample and orderly market for U.S. Treasury securities. B. They are privately owned and publicly controlled central banks whose basic goal is to control the money supply and interest rates in promoting the general economic welfare. C. They are privately owned and publicly controlled central banks whose basic goal is to earn profits for their owners. D. They are privately owned and publicly controlled central banks whose basic function is to minimize the risks in commercial banking in order to make it a reasonably profitable industry.
Alex's Furniture Mart produces and sells tables in a perfectly competitive market. When Alex's Furniture Mart produces and sells 250 tables, its marginal cost is equal to $200, and AVC is rising. If the market price of tables is equal to $150, Alex's Furniture Mart should:
A. decrease its level of table production. B. increase its level of table production. C. continue producing 250 tables. D. raise the price of its tables.