Input Prices Are ________ in the Short Run and ________

question 40

Multiple Choice

Input prices are ________ in the short run and ________ in the long run.

• A) sticky; sticky
• B) flexible; flexible
• C) increasing; increasing
• D) flexible; sticky
• E) sticky; flexible

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Definitions:

After-Tax Discount Rate

The rate used to discount future cash flows to their present value after accounting for the effects of taxes, reflecting the net cost of capital to the company.

Income Tax Rate

The percentage at which an individual or corporation is taxed on their income, which can vary by income level and jurisdiction.

Avoidable Costs

Avoidable costs are expenses that can be eliminated if a particular decision is made or if a certain activity is stopped.

Alternatives

Various options or choices available to decision-makers.