A Firm That Is Earning Positive Profits in the Short

question 246

Multiple Choice

A firm that is earning positive profits in the short run has an incentive to ________ its scale of operation in the long run.

• A) expand
• B) contract
• C) not change
• D) encourage another firm to expand

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Definitions:

Full Faith and Credit Clause

A constitutional mandate requiring states to recognize and respect the public records, judicial proceedings, and legislative acts of other states.

Brady Handgun Violence Prevention Act

Federal legislation that requires background checks on individuals before a firearm purchase to prevent firearms sales to prohibited buyers.

Supreme Court

The highest federal court in the United States, with ultimate appellate jurisdiction over all federal and state court cases involving points of federal law.

Unitary System

A form of government in which a single central government holds all the power, with any regional authorities operating under its directive.