If the Unexpected Short-Run Fluctuations in Demand Begin to Look

question 35

Multiple Choice

If the unexpected short-run fluctuations in demand begin to look permanent:

• A)the firms would allow their prices to change accordingly.
• B)the firms would be hesitant to allow their prices to change accordingly.
• C)the firms would not allow their prices to change.
• D)the firms would change the quality of their products but not the prices.

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Definitions:

Production Function

A mathematical model that defines the maximum output of a company from different combinations of input factors.

Cartoonists' Labor

The creative and artistic work performed by cartoonists, including drawing cartoons or comic strips.

Jokes

Short stories or statements designed to provoke laughter or amusement.

Short-Run Marginal Cost

The increase in cost that results from producing one additional unit of output, specifically in the short term where at least one input is fixed.