a) According to economic theory, the difference between the long run and the short run is: O. not relevant for executive decision makers. O. about two years. O. about two months. O. the ability for a firm to vary all resources. O. strictly theoretical so that in practice there is no difference between them. b) From a social viewpoint, when price = marginal cost: O. the economy as a whole would be better off if less was produced. O. firms would be better off by producing less. O. the consumers would be better by consuming less. O. the economic efficiency would be attained as a whole. O. the economy as a whole would be better off if more was produced.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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Question 1)

a) According to economic theory, the difference between the long run and the short run is:

O. not relevant for executive decision makers.

O. about two years.

O. about two months.

O. the ability for a firm to vary all resources.

O. strictly theoretical so that in practice there is no difference between them.

b) From a social viewpoint, when price = marginal cost:

O. the economy as a whole would be better off if less was produced.

O. firms would be better off by producing less.

O. the consumers would be better by consuming less.

O. the economic efficiency would be attained as a whole.

O. the economy as a whole would be better off if more was produced.

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