Answer:
The correct answer is option c.
Explanation:
The variable costs are the cost incurred on the variable factors of production. The fixed costs are the costs incurred on the fixed factors.
In the short run, there are certain factors that are fixed and others that are variable. So in the short run, some costs are fixed and others are variable.
But in the long run, there is enough time for all the factors to be changed. So all the factors are variable and cost incurred on these variables is also variable.
So we can say that in the long run, there are no fixed costs.
I think the answer should be B. The federal budget is reduced to tackle the deficit problem is not shift the AD curve. Hope it helped you, and have a great day.
Answer:
D
Explanation:
Risk premium is the compensation given to investors for holding risky assets. The more risky an asset is, the higher the premium.
A rational investor would be unwilling to invest in a stock that offers zero premium because there is no compensation for the risk that is borne by the investor.
Risk premium is always positive.
Risk premium = expected rate of return of the asset - expected rate of return of the risk free asset.
The more risky the asset, the higher the expected rate of return. So, the expected rate of return of the asset would always be higher than the risk free rate. This makes risk premium positive
If we had the same thing then the answer is family life cycle!!
The
two basic assumptions that economists make about individuals and firms are:
<span>The
first assumption is that individuals maximize their overall potential and try
to make themselves as resourceful as possible. And second is that to make more
profit as possible, a firm can do anything what it needs to do for this. Economists
keeps the economy in check by these assumptions.</span>
