A Decision Can Be Said to Have Improved If It

question 18

True/False

A decision can be said to have improved if it can be made more quickly.

Distinguish between normal and inferior goods in response to income changes.

Recognize the effect of substitutes on market demand.

Interpret shifts and movements along demand and supply curves.

Understand the impact of price changes on the quantity demanded and supplied.

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Definitions:

Fixed Factors

Inputs in the production process that cannot be easily increased or decreased in a short period of time.

Constant Returns To Scale

a situation in production where increasing all inputs by the same percentage results in output increasing by that same percentage.

Long-run Profits

The potential earnings of a business over a period long enough for all inputs to be adjusted, considering the firm's ability to enter or exit markets.

Factor Price

The price at which factors of production (land, labor, capital) are bought and sold.