A oligopoly consists of a few independent firms
Answer:
C. all factors of production are variable.
Explanation:
The long run is a time horizon where all factors of production are variable. It is usually the planning period of a firm. In the long run a firm can decide to enter or leave an industry, increase or reduce price and adjust cost of production.
The short run is a time horizon where some factors of production are variable, while at least one factor of production is fixed. Usually a firm cannot adjust production, costs or prices in the short run.
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Answer:
The correct answer is ii. The unemployment rate will rise in the short run but return to the natural rate of unemployment in the long run, and real GDP will drop below potential GDP in the short run but return to potential GDP in the long run.
Explanation:
The economic recession occurs when there is a decrease in economic activity within a specific country. If shock actions are not taken, the most likely thing that happens is that companies stop hiring staff because they will require much less labor. This situation is explained in Okun's law, which mathematically demonstrates the relationship between the unemployment rate and economic growth.
Answer:
The correct answer is option D.
Explanation:
A monopoly market consists of the only a single firm which produces goods with no close substitutes. Such a firm is a price maker and faces a downward-sloping demand curve.
There is no supply curve as the behavior of producers cannot be predicted. A producer can charge any price but it is able to maximize profits at the point where the price is equal to marginal cost.
Thus the change in quantity due to an increase in the demand for monopoly products cannot be predicted.
