In 2012, Lake Would Recognize Realized Gross Profit Of

question 105

Multiple Choice

In 2012, Lake would recognize realized gross profit of:

• A)$150,000.
• B)$0.
• C)$300,000.
• D)$450,000.

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Definitions:

Long Run

A period in economic analysis where all factors of production and costs are variable, allowing for full adjustment to changes in the market or economy.

Short Run

A period in economic theory during which at least one factor of production is fixed, limiting the capacity to adjust to changes in market demand.

Elastic

Describes a situation where the quantity demanded or supplied of a good is sensitive to changes in price.

Short Run

A period in economics during which the quantity of at least one input (such as plant size) is fixed and cannot be changed.