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Author Question: In economics, what differentiates the short run from the long run? What will be an ideal ... (Read 58 times)

j.rubin

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on: Jun 29, 2018
In economics, what differentiates the short run from the long run?
 
  What will be an ideal response?

Question 2

There will be no deadweight loss if the marginal benefit to consumers is equal to the marginal cost of production and the sum of consumer surplus and producer surplus is maximized.
 
  Indicate whether the statement is true or false


harveenkau8139

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Reply #1 on: Jun 29, 2018
Answer to Question 1

In the short run, the firm has a fixed factor that limits its level of production. In the long run, all factors are variable. In the short run firms cannot enter or exit the industry. In the long run, this is no longer true.

Answer to Question 2

TRUE


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