According to economic theory, the difference between the long run and the short run is:
a. about two months.
b. about two years.
c. not relevant for executive decision makers.
d. strictly theoretical so that in practice there is no difference between them.
e. the ability for a firm to vary all resources.
e
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A decrease in the price of eggs, all other things unchanged, will result in a(n):
A) increase in the demand for eggs. B) increase in the supply of eggs. C) greater quantity of eggs supplied. D) greater quantity of eggs demanded.
Suppose that for each firm in the competitive market for potatoes, long-run average cost is minimized at $0.20 per pound when 500 pounds are grown. The demand for potatoes is Q = 10,000/p. If the long-run supply curve is horizontal, then how many pounds of potatoes will be consumed in total?
A) 0 B) 500 C) 10,000 D) 50,000