The Data Shows That Total Profit in the U

question 71

Multiple Choice

The data shows that total profit in the U.S.economy

• A)has decreased steadily over time.
• B)is not influenced by the business cycle.
• C)tends to decrease in recessions, increase in expansions.
• D)tends to increase in recessions, decrease in expansions.
• E) tends to increase in even years, and decrease in odd years, although no one can explain why.

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Definitions:

Short Run

The short run in economics is a period during which at least one input, like plant size, is fixed and cannot be changed.

Monopolistically Competitive

A market structure where many firms sell products that are similar but not identical, allowing for some degree of market power and price setting.

Fixed Costs

Expenses that do not vary with the level of production or sales, such as rent or salaries.

Short Run

A period in which at least one of a firm's inputs is fixed and cannot be changed, limiting the firm's capacity to adjust production levels.