When a Factory Is Operating in the Short Run

question 198

Multiple Choice

When a factory is operating in the short run,

• A)it cannot alter variable costs.
• B)total cost and variable cost are usually the same.
• C)average fixed cost rises as output increases.
• D)it cannot adjust the quantity of fixed inputs.

---

Definitions:

Adverse Selection

A situation in which one party in a transaction has more or better information than the other, often leading to inefficiencies.

Market Wage

The prevailing wage rate for labor in a particular market, influenced by supply and demand.

Pairwise Majority Voting

A voting system in which each option is compared head-to-head with every other option, and the option that wins the most comparisons is selected.

Transitivity

The concept in mathematics and logic that if relation "A" is related to "B", and "B" is related to "C", then "A" is related to "C".