Solved by verified expert :23.1
Short
Run Versus Long Run
1)
For a firm, we define the short run as a period of time
during which
A)
at least one input cannot be changed.
B)
all inputs can be changed.
C)
only the plant size can be changed.
D)
all inputs cannot be changed.
2)
The
short run is
A)
a
period of time during which at least one input cannot be changed.
B)
a
period of time during which no inputs can be changed.
C)
a
period of time during which all inputs can be changed.
D)
a
period of time shorter than one year.
3)
For
an economist the short run means a time period
A)
during
which new firms are prohibited from entering the industry.
B)
during
which firms are not allowed to change the amount of imported resources they
use.
C)
that
is between one and five years.
D)
during which the firm is unable to change its plant size.
644
Miller· Economics Today, Fourteenth
Edition
4) When El Torito Restaurant is deciding
how many waiters to hire for a holiday weekend, it is making a ________ decision.
A) plant-size
B) long-run
C)
short-run
D) fixed-input
5) In the long run, a firm can change
A) nothing.
B) only one input, such as plant size.
C)
all
inputs.
D) None of the above are correct.
6) The amount of calendar time
associated with the long run
A) is less than five years.
B) is greater than one year.
C)
is
between one and five years.
D) varies by industry.
7) If Microsoft is determining whether
to build a new plant in Southern California or in New Mexico, it is making a(n)
________ decision.
A) immediate-run
B) long-run
C)
short-run
D) variable-input
Chapter 23 The Firm: Cost and Output
Determination 645
8)
The time frame in which all factors of production can vary
is
A)
the short run.
B)
the intermediate run.
C)
the long run.
D)
indeterminate.
9)
If a firm can vary all of its factors of production, it is
operating in
A)
the long run.
B)
the immediate run.
C) equilibrium.
D) the short run.
10) Which of the following is a long-run adjustment?
A)
A
restaurant hires a new chef.
B)
A
company builds a new manufacturing plant.
C) A bank hires a new CEO.
D) A company hires ten new management
trainees.
