Although Capital Is a Variable Factor in the Long Run,once

question 33

Multiple Choice

Although capital is a variable factor in the long run,once chosen it often becomes a fixed factor for a long time.A profit-maximizing firm must therefore select a method of production that is

• A)economically efficient at current factor prices.
• B)technologically advanced beyond methods currently used.
• C)labour intensive,as labour is always a variable factor.
• D)economically efficient at current factor prices and sufficiently flexible to adapt to changing factor prices over time.
• E)adaptable to wide ranges of output over time.

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Definitions:

Alveoli

Tiny air sacs in the lungs where the exchange of oxygen and carbon dioxide takes place, crucial for breathing.

Gas Exchange

The process by which oxygen is taken in and carbon dioxide is expelled out of the body, primarily occurring in the lungs.

Tidal Volume

The amount of air that is inhaled or exhaled during a normal breath.

Carbon Monoxide Detector

A device that detects the presence of the carbon monoxide gas in order to prevent carbon monoxide poisoning.