How short is the short-run production ...

[kellyjaisingh]

How short is the short-run production period?

Question 2

For resources with upward-sloping supply curves:
 a. earnings consist solely of economic rent.
  b. earnings consist of both transfer earnings and economic rent.
  c. earnings are called transfer earnings.
  d. earnings are called dividends.
  e. earnings consist entirely of interest payments.

[djofnc]

Answer to Question 1

In the short run, some factors cannot be adjusted. In the long run, all inputs are variable. The short-run period will vary in duration across firms. For example, for a large utility company, the short-run period might last ten years because of the time needed to build a new generating plant. For a roadside fruit seller, the short-run period might be much shorter.

Answer to Question 2

b

[kellyjaisingh]

TYSM

[olderstudent]

Excellent