How short is the short-run production period?
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.
You might also like to view...
A price ceiling set below the equilibrium price is nonbinding
a. True b. False Indicate whether the statement is true or false
The fact that doctors are paid more than economics professors is an example of a compensating differential
a. True b. False Indicate whether the statement is true or false
If a perfect competitor is losing money it must be in the _________.
When two countries specialize and trade:
A. they can have consumption possibilities beyond their production possibilities. B. surplus can be gained by both countries. C. both can enjoy more output than either could produce on its own. D. All of these are true.