« previous next »

Author Question: Identify the difference between the short-run and the long-run.[br][br][b][color=#7BCCB5]Question ... (Read 86 times)

asan beg

  • Hero Member
  • *****
  • Posts: 570
on: Jun 30, 2018
Identify the difference between the short-run and the long-run.

Question 2

A perfectly competitive firm produces 50 units of output, at equilibrium, in the short run. The total cost borne by the firm is 300 and the average revenue is 2 . Therefore, the firm:
 a. is just breaking even.
  b. is earning positive profits.
  c. is facing a positively sloped demand curve.
  d. is suffering losses.
  e. is experiencing diseconomies of scale.


momtoalll

  • Sr. Member
  • ****
  • Posts: 326
Reply #1 on: Jun 30, 2018
Answer to Question 1

The short run is defined as the length of time during which the decision maker can vary some inputs, although others remain fixed. In the long run all inputs are variable. Inputs are still substitutable in the short run: the firm can change its output level by changing only those inputs that are variable. Long-run substitution is more obvious: the firm can produce a given rate of output using labor intensive methods that use a high ratio of worker time to capital (machinery) services, or it can use the opposite mix, a capital intensive one.

Answer to Question 2

d


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

asan beg

  • Hero Member
  • *****
  • Posts: 570
Reply #2 on: Jun 30, 2018
Thank you


momtoalll

  • Sr. Member
  • ****
  • Posts: 326
Reply #3 on: Jun 30, 2018
No problemo


« previous next »
 

Did you know?

Certain chemicals, after ingestion, can be converted by the body into cyanide. Most of these chemicals have been removed from the market, but some old nail polish remover, solvents, and plastics manufacturing solutions can contain these substances.

Did you know?

The average adult has about 21 square feet of skin.

Did you know?

The Centers for Disease Control and Prevention has released reports detailing the deaths of infants (younger than 1 year of age) who died after being given cold and cough medications. This underscores the importance of educating parents that children younger than 2 years of age should never be given over-the-counter cold and cough medications without consulting their physicians.

Did you know?

Russia has the highest death rate from cardiovascular disease followed by the Ukraine, Romania, Hungary, and Poland.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

A herd of barren-ground caribou at the Thelon River. This subspecies is a long-distance migrant A herd of barren-ground caribou at the Thelon River. This subspecies is a long-distance migrant
Major trunk lines carrying long-distance traffic crisscrossed the area east of the Mississippi. The Major trunk lines carrying long-distance traffic crisscrossed the area east of the Mississippi. The
Additive Color Mixing and Paint Mixing Additive Color Mixing and Paint Mixing
How to solve a half life problem involving exponential models (Question 2) How to solve a half life problem involving exponential models (Question 2)
Hardy-Weinberg Question P3 Hardy-Weinberg Question P3
this is a math question this is a math question
Video: Phlebotomy

For a complete list of videos, visit our video library