What distinguishes short-run cost analysis from long-run cost analysis for a profit-maximizing firm in the short run?
a. The size of the factory is fixed.
b. There are no fixed costs.
c. Output is not variable.
d. The number of workers used to produce the firm's product is fixed.
Answer: a. The size of the factory is fixed.
Economics
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In the strategic view of bargaining:
a. Bargaining is described by an explicit game b. Insights are drawn from how many similar games are played without specifying the strategies c. We use the fact that bargaining often results in a fifty-fifty split d. It is important to limit your opponent's disagreement value
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The law of diminishing marginal utility states that marginal utility must diminish after the first unit of consumption of every good or service
a. True b. False Indicate whether the statement is true or false
Economics