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copperelk393Lv1
29 Sep 2019
Short-run costs are calculated with at least one input fixed and thus with a fixed cost. Long-run costs are calculated with all the inputs variable.
Provide examples and explanations of some of the following short-run and long-run circumstances of "typical" firms:
1) A firm with a small capacity to produce relative to the demand in the market;
2) A firm with a large capacity to produce relative to the demand in the market;
3) A firm that experiences economies of scale as it increases its plant capacity;
Short-run costs are calculated with at least one input fixed and thus with a fixed cost. Long-run costs are calculated with all the inputs variable.
Provide examples and explanations of some of the following short-run and long-run circumstances of "typical" firms:
1) A firm with a small capacity to produce relative to the demand in the market;
2) A firm with a large capacity to produce relative to the demand in the market;
3) A firm that experiences economies of scale as it increases its plant capacity;
Sonal BahlLv10
29 Sep 2019