Which of the following is true of long-run costs and short-run costs?
a. In the long run, changes in variable costs and fixed costs will cancel each other out.
b. In the long run, no costs are truly fixed costs.
c. In the short run, no costs are truly fixed costs

Which of the following scenarios would cause an outward shift in the production possibilities curve?

a. temporary shutdown of mines due to frequent accidents b. discovery of large mineral deposits c. tougher environmental legislation d. shortage of skilled labor

When economists say the demand for a good is highly inelastic, they mean that

a. even if the price rose substantially, suppliers would be unwilling to offer much more of the good. b. the facilities utilized by producers of the good are inflexible; producers cannot easily expand their facilities, even in the long run. c. consumers will respond to a change in the price of the good by purchasing substantially more of it. d. a large (percentage) change in the price of a good will result in only a small (percentage) change in the quantity demanded.