During the Short Run, a Firm Has Enough Time to Adjust

question 221

Multiple Choice

During the short run, a firm has enough time to adjust:

• A) its technology.
• B) its fixed inputs.
• C) its variable inputs.
• D) all of its inputs-both fixed and variable.

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Definitions:

Common Stock

Equity shares issued by a company giving shareholders voting rights and a residual claim on corporate earnings and assets.

Par Value

Par value is the nominal or face value of a stock or bond as stated by the issuer, which might not reflect its market value.

Shares

Units of ownership interest in a corporation or financial asset, which provide dividends and voting rights to the shareholder.

Preferred Stock

A category of corporate ownership that ranks above common stock in both asset claims and earnings, typically accompanied by set dividend payments.