How long is the long run?
What will be an ideal response?
In the long run, all inputs are variable. This is a different period of time for different firms. For electric power utilities, the long run is likely to be more than 10 years, given the long time it takes to build a generating plant. For a roadside seller of apples, the long run may be very short, as it takes little time to increase the size of the apple cart.
Economics
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Free riding is possible if the good is nonexcludable
Indicate whether the statement is true or false
Economics
When a monopolistically competitive firm lowers its price, one good thing happens to the firm. What is this "one good thing" called?
A) the income effect B) the price effect C) the substitution effect D) the output effect
Economics