A Corporation's Charter Should Be Brief, in Accord with State

question 34

True/False

A corporation's charter should be brief, in accord with state law, and broad in the statement of the firm's powers.

Know the difference between long run and short run in economic terms.

Understand the goal of firms to maximize total revenue.

Understand the distinction between System I and System II thinking as it applies to human reasoning and decision-making.

Identify and explain the phenomenon of confirmation bias in hypothesis testing and reasoning.

---

Definitions:

Long-Run Cost Function

A representation of how the total production cost of a firm changes with output in the long run, when all inputs can be varied.

Positive Output

The production of goods or services in an amount greater than zero, indicating activity or productivity in economic terms.

Total Cost

The aggregate of expenses related to the creation of goods or services, which includes fixed costs and variable costs.

Long-Run

In economics, a period in which all factors of production and costs are variable, allowing for full adjustment to change.