The period of time that is too short for the firm to change the quantity of cert

Question

The period of time that is too short for the firm to change the quantity of certain resources used in production, known as fixed inputs, is called the short run.

One would expect to observe a diminishing marginal product of labor when crowded office space reduces the productivity of new workers.

The market demand curve in a perfectly competitive industry is downward sloping, while the demand curve faced by an individual perfectly competitive firm is horizontal.

Economic profits in a perfectly competitive industry will encourage entry of new firms, which will shift the market supply curve to the right.

Perfectly competitive firms earn zero economic profit in the long run.

As an industry's output increases, the industry's demand for the inputs that it uses will also increase.

When faced with an economic loss, a competitive firm will exit the industry in the long run.

Regardless of the demand for its product, a monopolist will be able to earn positive economic profits.

Explanation / Answer

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