In the long run which of the following is true?
A) There are no fixed costs.
B) The size of a firm's physical plant can be changed but the firm cannot adopt new technology.
C) The firm can vary its explicit costs but not its implicit costs.
D) Total cost = fixed cost + variable cost.
A
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Suppose option A has a higher standard deviation than option B. Which of the following statements is, in general, true?
A. A risk-averse person prefers option A to option B. B. A risk-neutral person is indifferent between options A and B. C. A risk-averse person prefers option B to option A. D. Insufficient information to determine.
Refer to the above figure. If a price ceiling of $3 was set
A. there would be a shortage of 20 units. B. the quantity sold would be 80 units. C. there would be a surplus of 40 units. D. there would be a shortage of 40 units.