What do economists mean when they say that a firm's plant is fixed?
What will be an ideal response?
The phrase that a "firm's plant is fixed" refers to the fact that, in the short run, there are some factors that are fixed, that is, the quantity employed cannot be changed. These factors of production, which include factors such as the firm's capital and land, are collectively referred to as the firm's plant.
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According to the Solow model of economic growth, if per capita savings, s (Y/N)0, exceeds required steady state investment, (n + d) K/N, then
A) per capita output declines. B) capital per capita increases. C) capital per capita decreases. D) steady state growth characterizes the economy.
Which is a screen against adverse selection
a. Insurance companies require homeowners to have smoke detectors b. Rearview cameras in cars c. Installing engine monitors to track driving habits of the insured d. Prospective secretaries must take a typing test before being hired