ECON 1B03 Lecture 8: week 8-4
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ECON 1B03 Full Course Notes
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The period of time in which at least in input is fixed is called the short run . The period of time when all inputs can vary is called the long run . All inputs become variable in the long run, down the road everything becomes more flexible. Example : in the sr, factory size is fixed, but in the lr, you can build any size factory you choose. Note that the length of the sr depends on the industry and the tech used, among other things. There is only one input to production - labour. Q = quantity of tvs assembled per week. Note : output increases as jerry adds workers, but after the 20th worker, it. Each additional group of workers adds to total output, but each one adds. The 6th group of workers actually take away from total output.