A Firm Can ________ Only in the Long Run

question 6

Multiple Choice

A firm can ________ only in the long run.

• A) reduce its sales-force size
• B) develop new products
• C) change its price
• D) modify advertising expenditures
• E) All of the above may be done in the short or long run.

Identify different types of psychological research methods and their purposes.

Understand the rationale and ethical considerations behind using animals in psychological research.

Recognize the role of negative correlations in psychological research and its implications.

Appreciate the necessity of controlling variables in experimental research to derive valid conclusions.

---

Definitions:

Production Possibilities

The various combinations of goods and services that can be produced from a fixed set of resources.

Circular-Flow Diagram

An economic model depicting how money, goods, and services move through an economy between households and firms.

Economy

An organized system of production, distribution, and consumption of goods and services within a specific geographical area, involving various agents and market forces.

Circular-Flow Diagram

A model that illustrates the flow of goods and services and money between households and businesses in an economy.