Microeconomics
13th Edition
ISBN: 9781337617406
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 8.3, Problem 1ST
To determine
Explain the short-run period and long-run period.
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if the short run is six months, does it follow that the long run is longer than six months?
What stage of production is the increase in output that results from increase in a firm's outputs by some proportion? If the firm is operating efficiently, how can it reduce cost in the short run?
How do fixed costs change over the long-term? Do costs get re-categorized into a variable cost when a firm is considering a longer time horizon?
Chapter 8 Solutions
Microeconomics
Ch. 8.2 - Prob. 1STCh. 8.2 - Prob. 2STCh. 8.2 - Prob. 3STCh. 8.2 - Prob. 4STCh. 8.3 - Prob. 1STCh. 8.3 - Prob. 2STCh. 8.3 - Prob. 3STCh. 8.4 - Prob. 1STCh. 8.4 - Prob. 2STCh. 8.4 - Prob. 3ST
Ch. 8.4 - Prob. 4STCh. 8.5 - Prob. 1STCh. 8.5 - Prob. 2STCh. 8.5 - Prob. 3STCh. 8 - Prob. 1QPCh. 8 - Prob. 2QPCh. 8 - Prob. 3QPCh. 8 - Prob. 4QPCh. 8 - Prob. 5QPCh. 8 - Prob. 6QPCh. 8 - Prob. 7QPCh. 8 - Prob. 8QPCh. 8 - Prob. 9QPCh. 8 - Prob. 10QPCh. 8 - Prob. 11QPCh. 8 - Prob. 12QPCh. 8 - Prob. 13QPCh. 8 - Prob. 14QPCh. 8 - Prob. 15QPCh. 8 - Prob. 16QPCh. 8 - Prob. 17QPCh. 8 - Prob. 18QPCh. 8 - Prob. 19QPCh. 8 - Prob. 1WNGCh. 8 - Prob. 2WNGCh. 8 - Prob. 3WNGCh. 8 - Prob. 4WNGCh. 8 - Prob. 5WNGCh. 8 - Prob. 6WNGCh. 8 - Prob. 7WNGCh. 8 - Prob. 8WNGCh. 8 - Prob. 9WNG
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Similar questions
- Please explain why the law of diminishing returns applies only in the short-term period.arrow_forwarda software production firm, average product has started falling and total output indicated diminishing trend. The production manager Mr. Yahya called you and asked you to see the condition of marginal product. You analyzed the situation and reported that marginal product falling more than average product. Mr. Yahya got surprised. In your opinion which situation the firm is heading to?arrow_forwardWhat best describes the long run? a period of time that labor can change a period longer than six months a period of time that at least one input cannot be changed a period of time that all inputs can be changedarrow_forward
- Give business examples of short-run costs, economies of scale, and minimum efficient scale (MES).arrow_forwardExplain how a change in the price of one input factor changes a firm’s long-run expansion path?arrow_forwardThe long run is defined as A) the period of time when all resources are variable. B) any time after one year. C) the period of time when most (more than 50 percent) resources are variable. D) the period of time when all resources are fixed.arrow_forward
- What is optimization? How does it blow up the myth about profit being a result of a mere increasedecrease interplay between cost and revenue? How much should a firm sell of a particular product in order to maximize profit? What factor does it have to consider in arriving at this decision?arrow_forwardThe long-run is a period of time long enough so that all inputs, including facility and equipment, are variable, while in the short run at least one input is fixed. Think about how much time it would take to change the scale of operation for a restaurant, for an automobile plant, for a website designing company... Does it seem that the amount of time that separates the long run from the short run is industry-specific, rather than a set period of time?arrow_forwardWhat are different types of costs involved in production of goods and services? Analyze the relationship between cost and productivity in the short run.arrow_forward
- The President of ACME wants to know why he shouldn't produce at the point when average costs are the lowest. Explain to him why this is not the best production level.arrow_forwardWhat factors account for a fall in the long-run cost curve?arrow_forwardWhat are economies and diseconomies of scale? How do they arise? What do they imply for the shape of the long-run average cost curve?arrow_forward
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