The Supply of Both Physical and Human Resources in the Long

question 97

Multiple Choice

The supply of both physical and human resources in the long run is determined primarily by

• A) the presence or absence of economies of scale.
• B) investment choices and resource depreciation.
• C) sunk costs; what happens in the present cannot change the future.
• D) the law of diminishing marginal returns.

Analyze the impact of low barriers to entry on market structure and firm profits.

Explain how the price-searcher's decision-making process affects output and pricing in the short and long run.

Understand the conditions and outcomes of competitive price-searcher markets in both short-run and long-run equilibriums.

Analyze the effects of market adjustments (entry and exit of firms) on prices, demand, and economic profits in competitive price-searcher markets.

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