Firms' Profits or Production Do Not Increase in the Long

question 18

Multiple Choice

Firms' profits or production do not increase in the long run because:

• A) some factors of production are fixed in the long run.
• B) all the factors of production are variable in the long run.
• C) changes in factor costs completely offset any change in the price level.
• D) there exists an excess capacity in the economy in the long run.
• E) factor costs remain fixed in the long run.

Identify and interpret differential, sunk, and opportunity costs in decision-making.

Utilize the standard cost formula for total, fixed, and variable costs.

Distinguish between direct manufacturing costs, conversion costs, and manufacturing overhead in cost accounting.

Calculate and understand the contribution margin and its significance in cost-volume-profit analysis.

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Definitions:

HRM Effectiveness

A measure of how successfully human resource management strategies and practices achieve their intended outcomes within an organization.

Employee Attitudes

The feelings, beliefs, and values that employees hold towards their work, workplace, and colleagues.

Motivation

The reason or reasons one has for acting or behaving in a particular way; an internal process that activates, guides, and maintains behavior over time.

Lifecycle

refers to the series of stages that an entity, product, or project goes through from its initiation or creation to its termination or conclusion.