If the short-term nominal interest rate is 3.4%, the term structure effect is 1.2%, the default-risk premium is 1.4%, and the expected rate of inflation is 2.7%, the long-term real interest rate will be

The long run is a planning period:

a. during which the firm can vary all inputs including its plant size. b. less than six months. c. less than one year. d. less than five years.

Which of the following examples of product differentiation uses location?

a. A restaurant promotes its make-your-own hamburgers. b. In an ad, a restaurant says it is situated on a beautiful lake. c. A bed-and-breakfast touts its four-star rating on its website. d. The trailer for a movie presents several excellent reviews from critics.