A characteristic of the long run is
A) all inputs can be varied.
B) there are fixed inputs.
C) there are both fixed and variable inputs
D) plant capacity cannot be increased or decreased.
Question 2
If Callum is consuming his utility maximizing bundle and the price of one good rises, what happens to the marginal utility per dollar spent on this good (MU/P), and what should Callum do?
A) MU/P has increased and Callum should buy less of this good.
B) MU/P has decreased and Callum should buy less of this good.
C) MU/P has increased and Callum should buy more of this good.
D) MU/P has decreased and Callum should buy more of this good.
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