What are short-run and long-run adjustments?
For unlimited access to Homework Help, a Homework+ subscription is required.
“Firms can make certain adjustments in the long run only which is not possible in the short-run but still some adjustments are possible even in the short-run.” Explain the possible adjustments firms can make in both the short-run and long run.
Which of the following are short run and which are long run adjustments?
(a) Wendy
A firm sells its product in a perfectly competitive market where other firms charge a price of $90 per unit. The firm's total costs are C(Q)=50+10Q+2Q2
a) how much output should the firm produce in the short run?
b)what price should the firm charge in the short run?
c) what are the firm's short-run profits?
d) what adjustments should be anticipated in the long run?
