
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Explain the difference between the short and long run
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- Find the out the returns to scale for the following firms. Raytheon has a production function Q = KL and Wal-Mart has production function Q = L + K2 Show your work or explain why.arrow_forwardWhat are some examples to illustrate Henry Hazlitt's lesson that what is true in the short run may not be true in the long run?arrow_forwardIn the economics for a company what is the difference between short run and long run In the long run all factors of production can be changed, in the short run some factors of production are fixed In the short run all factors of production can be changed, in the long run some factors of production are fixed In the short run profits are less In the long run profits are lessarrow_forward
- GM cuts jobs at its Australian manufacturing unit GM will cut 500 jobs, or about 12% of its workforce, at its Australian plant because of a sharp fall in demand for its locally-made "Cruze" small car. Source: The Wall Street Journal, April 8, 2013 As GM cuts its workforce, how will the marginal product and average product of a worker change in the short run? Suppose that before the cuts the marginal product of GM workers is below their average product. As the number of workers decreases, the marginal product of a GM worker and the average product of a GM worker in the short run. increases; decreases does not change; does not change decreases; decreases increases; increases decreases; increasesarrow_forwardWhat is the law of diminishing returns? Explain why it applies only in the short run.arrow_forward
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