« previous next »

Author Question: In economics, what is the difference between the short run and the long run? What will be an ... (Read 62 times)

mckennatimberlake

  • Hero Member
  • *****
  • Posts: 559
on: Jun 29, 2018
In economics, what is the difference between the short run and the long run?
 
  What will be an ideal response?

Question 2

There are many cattle ranchers in the world, and there are also many McDonald's restaurants in the world. Why, then, does a McDonald's restaurant face a downward-sloping demand curve while a cattle rancher faces a horizontal demand curve?
 
  What will be an ideal response?
InMicro ¦ Hubbard, O'Brien ¦ 1st Edition
Buy Test-Bank


sarahccccc

  • Sr. Member
  • ****
  • Posts: 318
Reply #1 on: Jun 29, 2018
Answer to Question 1

In economics, the short run refers to the period of time during which at least one of a firm's inputs is fixed. The long run refers to the period of time in which a firm can vary all its inputs, adopt new technology, and increase or decrease the size of its physical plant.

Answer to Question 2

All cattle ranchers are selling identical goods, but fast food restaurants do not sell identical goods. If a cattle rancher raises his price above the market price, he will lose all of his buyers. A McDonald's restaurant can raise its price without losing all of its buyers because it is selling a product that is not identical to the products sold by other restaurants.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Not getting enough sleep can greatly weaken the immune system. Lack of sleep makes you more likely to catch a cold, or more difficult to fight off an infection.

Did you know?

Prostaglandins were first isolated from human semen in Sweden in the 1930s. They were so named because the researcher thought that they came from the prostate gland. In fact, prostaglandins exist and are synthesized in almost every cell of the body.

Did you know?

Interferon was scarce and expensive until 1980, when the interferon gene was inserted into bacteria using recombinant DNA technology, allowing for mass cultivation and purification from bacterial cultures.

Did you know?

Autoimmune diseases occur when the immune system destroys its own healthy tissues. When this occurs, white blood cells cannot distinguish between pathogens and normal cells.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

The rate of evolution in short­ and long­lived plants The rate of evolution in short­ and long­lived plants
Gross Anatomy of a Long Bone Gross Anatomy of a Long Bone
Associative Long-Term Potentiation Associative Long-Term Potentiation
How Long Does Poverty Last? How Long Does Poverty Last?
What's the Difference Between England, Great Britain, and United Kingdom? What's the Difference Between England, Great Britain, and United Kingdom?
Video: Structure of a Ribosome

For a complete list of videos, visit our video library