In the Short Run, a Firm

question 60

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.

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Definitions:

National Government

The organization through which a nation exercises its authority, conducts its governance, and implements policies over its citizens.

Separation of Powers

The division of governmental authority into distinct branches (legislative, executive, and judicial) to prevent abuse of power.

International Law

A set of rules and agreements that govern the relations and conduct of nations, organizations, and individuals across global boundaries.

National Law

The body of laws and regulations that are enacted by a country’s legislative body and applied within its borders.