« previous next »

Author Question: Identify the difference between the short-run and the long-run.[br][br][b][color=#7BCCB5]Question ... (Read 80 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?

Cocaine was isolated in 1860 and first used as a local anesthetic in 1884. Its first clinical use was by Sigmund Freud to wean a patient from morphine addiction. The fictional character Sherlock Holmes was supposed to be addicted to cocaine by injection.

Did you know?

Hippocrates noted that blood separates into four differently colored liquids when removed from the body and examined: a pure red liquid mixed with white liquid material with a yellow-colored froth at the top and a black substance that settles underneath; he named these the four humors (for blood, phlegm, yellow bile, and black bile).

Did you know?

The term pharmacology is derived from the Greek words pharmakon("claim, medicine, poison, or remedy") and logos ("study").

Did you know?

ACTH levels are normally highest in the early morning (between 6 and 8 A.M.) and lowest in the evening (between 6 and 11 P.M.). Therefore, a doctor who suspects abnormal levels looks for low ACTH in the morning and high ACTH in the evening.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

computer short cuts computer short cuts
economic question economic question
economic question economic question
Physics question Physics question
Eye Color Variation Eye Color Variation
X-linked eye-color phenotypes in Drosophila melanogaster X-linked eye-color phenotypes in Drosophila melanogaster
Video: Digestion Animation

For a complete list of videos, visit our video library