In the Wake of the U

question 17

Multiple Choice

In the wake of the U.S.failure to ratify the Kyoto Protocol,______________ .

• A)U)S.cities and states are setting their own programs for reducing greenhouse gas emissions
• B)many nations have severed diplomatic relations with the United States
• C)dozens of other nations pulled out of the Protocol
• D)oil exporting nations have refused to sell to the United States
• E)the United States has shown that it is a leader in carbon emission reduction without having signed the Protocol

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Definitions:

Fixed Set-Up Costs

Initial costs that do not vary with the level of production or sales, such as equipment purchases or facility leases, needing to be paid before production starts.

Economies of Scale

The savings businesses gain from operating at a larger scale, where the expense for each unit produced diminishes as the scale enlarges.

Short Run

A period in which at least one input in the production process is fixed, limiting the ability of a firm to adjust to changes in market demand.

Long Run

An economic term referring to a period during which all factors of production and costs are variable, allowing for full adjustment to changes.