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Costs In The Long-Run
Beginning of paper
Just as some costs are fixed and others are variable so are the
inputs, or resources, or, factors of production used by the firm and this
has an impact on its short and long run operations. These time periods
(the short and the long run) do not refer to specific, chronological time
of hours, days, weeks, months or years. Rather they ar .... Middle of paper
.... to the scale of production and decisions in the short run are to
do with choosing an output level within the capacity constraint.
With this introduction to the firms costs and output decisions we
can now apply them to see how firms decide on the output to produce in
order to maximise profits, the combination of actors of production to
employ and how output changes in response to employing more or a variable
factor in combination with ....
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Number of words: 330
Number of pages: 2 (approx. 250 words per double-spaced page)
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