The Santa Fe Spark Plug Company supplies spark plugs to automotive parts dealers. An increase in the demand for its product led Santa Fe to hire 150 new workers
Santa Fe also plans to expand the capacity of its plant but this project will take 2 years to complete. Which of the following statements is true?
A) The long run for Santa Fe is longer than 1 year.
B) The wages and benefits paid to the new workers are implicit costs.
C) In the short run Santa Fe's variable costs increase but its fixed costs decrease.
D) The short run for Santa Fe is 1 year.
A
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________ are generally produced by the government.
A. Externalities B. Public goods C. Private goods D. Market failures
The fact that more women have chosen to work as real wages rise is evidence that, for them
a. leisure is an inferior good. b. income and substitution effects of higher real wages work in the same direction. c. income and substitution effects of higher real wages may work in opposite directions. d. income and substitution effects may work in opposite directions but that the substitution effect is stronger.