The Long Run Is a Time Frame in Which

question 91

Multiple Choice

The long run is a time frame in which

• A)the firm can hire all the workers it wants to employ,but it does not have sufficient time to buy more equipment.
• B)the firm is able to maximize revenue.
• C)the firm may want to build a bigger plant,but cannot do so.
• D)economic efficiency is achieved.
• E)the quantities of all factors of production can be varied.

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Definitions:

Frustrated Contract

A contract that, due to unforeseeable circumstances beyond the control of the parties, cannot be fulfilled, leading to its termination without fault.

Anticipatory Breach

An act where one party ahead of time indicates that they will not fulfill their contractual obligations, allowing the other party to consider the contract broken.

Loss Apportionment

The process of dividing the responsibility for financial losses among different parties, typically in accordance with their fault or liability.

Frustration Availability

Refers to situations where the doctrine of frustration can be applied to release parties from their contractual obligations.