In the ________, the perfectly competitive firm will react to losses by __________________________ .
A. short run; reducing production or shutting down
B. long run; reducing production or shutting down
C. short run; increasing physical inputs
D. long run; increasing capital inputs
Answer:B
In the ________, the perfectly competitive firm will react to losses by __________________________ .
A. short run; reducing production or shutting down B. long run; reducing production or shutting down C. short run; increasing physical inputs D. long run; increasing capital inputs
Explanation: 24. Why would a profit-seeking firm need to tailor its decisions about the quantity of labor inputs that it purchases?