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If workers actively demand pay increases when the price level is rising and are willing to accept pay cuts when the price level is falling then the short-run aggregate supply curve would be horizontal?
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How does a longrun production function differ from a shortrun production function?
üProduction function shows technological relationship between quantity of output and quantity of various inputs used in production. üProduction function in economic sense states the maximum output that can be produced during a period with certain quantity of various inputs in the existing state of technology. üIt is the tool of analysis which is used to explain input - output relationships. üIn general it tells that production of a commodity depends on specified inputs. ü ü
Using the aid of a diagram how can a perfectly competitive firm make supernormal profit in a shortrun?
It makes "supernormal profit" (aka. economic profit), by having the price exceed Average Cost. Remember that PRICE is also Average revenue AND demand. So that being said, P=AR=D. Because, if they are receiving more money than it cost them to make the product, it is profitable. It is also important to keep in mind that it is impossible for a perfectly competitive firm to make "supernormal profits" in the long run. It can only be done in the short run. That is a very basic explanation of it, as I did not even mention accounting profit. However, that should be enough info. Here's the diagram you'll want to follow: http://wpcontent.answers.com/wikipedia/en/thumb/9/90/Perfect_competition_in_the_short_run.PNG/300px-Perfect_competition_in_the_short_run.PNG
Which concepts are easiest to apply in the short run?
Concepts that are easiest to apply in the short run are those that are simple, practical, and provide immediate results. This might include time management techniques like prioritizing tasks, setting boundaries, or delegating responsibilities. Additionally, strategies like setting specific, achievable goals or implementing small habit changes can also be effective in the short term.
What has the author Jitendar S Mann written?
Jitendar S. Mann has written: 'The distribution of shortrun commodity price movements' -- subject(s): Commodity exchanges, Gaussian processes, Random walks (Mathematics)
How does a longrun production function differ from a shortrun production function?
üProduction function shows technological relationship between quantity of output and quantity of various inputs used in production. üProduction function in economic sense states the maximum output that can be produced during a period with certain quantity of various inputs in the existing state of technology. üIt is the tool of analysis which is used to explain input - output relationships. üIn general it tells that production of a commodity depends on specified inputs. ü ü
For a firm to operate in the shortrun the total revenue must at least be equal to Why?
A firm would still operate if revenues are below total coots, but not if revenues are below variable costs. The reason is that as long as revenues are above variable costs, the firm will earn a difference to contribute to the fixed costs (fixed costs are costs that a company has to pay in the short-run whether it operates or not). If the firm stops operating in the short-run, it will have to pay for the full fixed costs (e.g., rent, some fixed labour) If revenues are below variable costs, for every unit of production, the company loses the difference and does not contribute to the fixed costs. It is more economical to shutdown in the short-run.
Using the aid of a diagram how can a perfectly competitive firm make supernormal profit in a shortrun?
It makes "supernormal profit" (aka. economic profit), by having the price exceed Average Cost. Remember that PRICE is also Average revenue AND demand. So that being said, P=AR=D. Because, if they are receiving more money than it cost them to make the product, it is profitable. It is also important to keep in mind that it is impossible for a perfectly competitive firm to make "supernormal profits" in the long run. It can only be done in the short run. That is a very basic explanation of it, as I did not even mention accounting profit. However, that should be enough info. Here's the diagram you'll want to follow: http://wpcontent.answers.com/wikipedia/en/thumb/9/90/Perfect_competition_in_the_short_run.PNG/300px-Perfect_competition_in_the_short_run.PNG
