How short is the short-run production period?
In the short run, some factors cannot be adjusted. In the long run, all inputs are variable. The short-run period will vary in duration across firms. For example, for a large utility company, the short-run period might last ten years because of the time needed to build a new generating plant. For a roadside fruit seller, the short-run period might be much shorter.
Economics
You might also like to view...
Refer to Figure 15-1. In the figure above, the money demand curve would move from Money demand1 to Money demand2 if
A) the price level increased. B) real GDP decreased. C) the interest rate decreased. D) the Federal Reserve sold Treasury securities.
Economics
The inflation tax is primarily a tax on
A) government bonds. B) Social Security recipients. C) money. D) real income.
Economics