The Long-Run Aggregate Supply Analysis Assumes That

question 24

Multiple Choice

The long-run aggregate supply analysis assumes that

• A)input prices are fixed, while product prices are variable.
• B)input prices are variable, while product prices are fixed.
• C)both input and product prices are variable.
• D)both input and product prices are fixed.

Calculate and distinguish between accounting profit and economic profit.

Recognize explicit costs and their impact on a firm's financial statements.

Comprehend the relationship between economic profit, accounting profit, and normal profit.

Identify the components of total production costs from an economist's perspective.

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