Generally,over Which Time Period Will a Firm Be Able to Respond

question 131

Multiple Choice

Generally,over which time period will a firm be able to respond most to a change in price

• A)in one month
• B)in six months
• C)in one year
• D)in five years

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Definitions:

Production Possibilities Frontier

A curve depicting all the possible combinations of two goods that can be produced within a given set of resources and technology level.

Marginal Utility

The extra pleasure or benefit derived from using an additional unit of a product or service.

Marginal Rates

The additional cost or benefit associated with a small incremental increase in a unit of activity.

Utilities Possibilities Frontier

A concept in economics that represents all possible allocations of utility or satisfaction among different goods and services for a particular consumer or society, graphically.