In the Short Run, a Firm

question 94

Multiple Choice

In the short run, a firm

• A) has at least one fixed factor of production.
• B) can enter an industry where positive profits are being earned.
• C) can exit an industry, and all of its factors of production are variable.
• D) both B and C are correct.

Comprehend the role of diversity in enhancing organisational culture and performance.

Understand the characteristics of effective diversity leadership and how it promotes an inclusive work environment.

Recognize the value of managing diversity and affirmative action in creating more equitable workplaces.

Link organisational culture to business strategies and outcomes, elucidating why it matters in a global business environment.

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Definitions:

Government Spending

The total amount of money spent by the government on various sectors including public services, welfare, defense, and infrastructure.

Industry Regulation

The imposition of rules by a government, along with mechanisms for their enforcement, designed to modify behaviors within specific industries.

Reserve Requirement

A regulation set by central banks determining the minimum amount of reserves that must be held by a commercial bank.

Credit Availability

Credit availability refers to the ease with which individuals and businesses can obtain loans or credit from financial institutions, which can significantly affect economic activity by influencing spending and investment.