In the Long Run, the Level of Output Is

question 71

Multiple Choice

In the long run, the level of output is:

• A) determined by the quantity of goods and services demanded
• B) determined by the quantity and productivity of resources
• C) determined by the level of interest rates
• D) none of the above

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Definitions:

Profitable Product

A product that generates more revenue than the costs associated with its production, marketing, and distribution.

Sufficient Time

Proper or adequate amount of time needed to complete a task or process.

Grinding Machine

A machine tool that uses an abrasive wheel as a cutting tool to shape or finish metals or other materials.

Existing Capacity

The maximum output that a facility can produce under normal working conditions within a given period.