In the short run, a firm cannot change the amount of capital it uses. Therefore the cost of capital is a
A) short-run cost.
B) variable cost.
C) productivity cost.
D) fixed cost.
E) marginal cost.
Answer D. fixed cost.
Economics
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Refer to Figure 27-5. In the dynamic model of AD-AS in the figure above, if the economy is at point A in year 1 and is expected to go to point B in year 2, and no fiscal or monetary policy is pursued, then at point B
A) the economy is above full employment. B) firms are operating below capacity. C) there is pressure on wages and prices to rise. D) income and profits are rising. E) the unemployment rate is very low.
Economics
If a town has a monopsony, this means
a. there is only one employer b. price discrimination takes place c. goods are priced too high d. no unions can exist e. excess profits are being made
Economics