When an Entrepreneur Is Able to Vary Some Inputs, but Has

question 39

Multiple Choice

When an entrepreneur is able to vary some inputs, but has at least one input that cannot be varied, the producer will examine a

• A) long-run cost function
• B) short-run cost function
• C) immediate-run cost function

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Definitions:

Prices Charged

The amount of money demanded by a business in exchange for its goods or services.

Long Run

A period during which all factors of production and costs are variable, allowing firms to adjust to desired levels.

Gas Station

A retail establishment that sells fuel and often other goods or services to motor vehicle customers.

Long-Run Equilibrium

A state in which all firms in an industry are making normal profit and there is no incentive for market entry or exit.