Which of the Following Explanations Supports the Statement That Long-Run

question 42

Multiple Choice

Which of the following explanations supports the statement that long-run supply curves are likely to be more elastic than short-run supply curves?

• A)Firms are able to adjust fixed inputs in the long-run but not in the short-run.
• B)Firms are able to adjust variable inputs in the short-run.
• C)Firms prefer to hire workers rather than capital.
• D)Firms have more flexibility in the short-run.

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Definitions:

Logrolling

The trading of votes by legislators to secure favorable outcomes on decisions concerning the provision of public goods and quasi-public goods.

Diminish

To decrease or make smaller in size, importance, or intensity.

Excludability

The characteristic displayed by those goods and services for which sellers are able to prevent nonbuyers from obtaining benefits.

Consuming

Consuming involves using up goods or services by purchasing, eating, or utilizing them to satisfy needs or wants.