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Expliain Cost- Output relationship both in the short-run and long-run?
THE SHORT-RUN COST-OUTPUT RELATIONSHIP REFERS TO A PARTICULAR SCALE OF OPERATION OR TO A FIXED PLANT. IT INDICATES VARIATIONS IN COST OVER OUTPUT FOR THE PLANT OF A GIVEN CAPACITY AND THEIR RELATIONSHIP WILL VARY WITH PLANTS OF VARYING CAPACITY.
What is the relationship between long-run average cost curve and short-run average cost curve?
what is the relationship between long run average cost curve and short run average cost curve?
If a firm decides to produce no output in the short run its costs will be?
its fixed cost
What kind of relationship you postulate between short-run and long run average cost curves when these are not U shaped?
The type of relationship that you postulate between short-run and long-run average cost curves that is not U shaped is the external limiting relationship.
What do economists believe is the relationship between the price level and real output in the short run and in the long run?
In the short run, economists generally believe that there is a positive relationship between the price level and real output, as higher prices can lead to increased production due to higher profit margins and the ability to cover variable costs. This relationship is often depicted by the upward-sloping short-run aggregate supply curve. In the long run, however, economists argue that real output is determined by factors such as technology, resources, and labor, leading to a vertical long-run aggregate supply curve where the price level has no effect on real output. Thus, in the long run, the economy tends to return to its potential output regardless of price level changes.
Expliain Cost- Output relationship both in the short-run and long-run?
THE SHORT-RUN COST-OUTPUT RELATIONSHIP REFERS TO A PARTICULAR SCALE OF OPERATION OR TO A FIXED PLANT. IT INDICATES VARIATIONS IN COST OVER OUTPUT FOR THE PLANT OF A GIVEN CAPACITY AND THEIR RELATIONSHIP WILL VARY WITH PLANTS OF VARYING CAPACITY.
What is the relationship between long-run average cost curve and short-run average cost curve?
what is the relationship between long run average cost curve and short run average cost curve?
If a firm decides to produce no output in the short run its costs will be?
its fixed cost
What kind of relationship you postulate between short-run and long run average cost curves when these are not U shaped?
The type of relationship that you postulate between short-run and long-run average cost curves that is not U shaped is the external limiting relationship.
Explain the difference between diminishing return of scale and economies of scale Provide examples if necessary diminishing return of scale?
Diminishing return of scale is a short run concept. It explains the relationship between the rate of output with increaring inputs of production. Economies of scale, on the other hand, explains the relationship between the LR average cost of producing a unit of good with increasing level of output. Diminishing return of scale is a short run concept. It explains the relationship between the rate of output with increaring inputs of production. Economies of scale, on the other hand, explains the relationship between the LR average cost of producing a unit of good with increasing level of output.
What do economists believe is the relationship between the price level and real output in the short run and in the long run?
In the short run, economists generally believe that there is a positive relationship between the price level and real output, as higher prices can lead to increased production due to higher profit margins and the ability to cover variable costs. This relationship is often depicted by the upward-sloping short-run aggregate supply curve. In the long run, however, economists argue that real output is determined by factors such as technology, resources, and labor, leading to a vertical long-run aggregate supply curve where the price level has no effect on real output. Thus, in the long run, the economy tends to return to its potential output regardless of price level changes.
What kind of relationship would you postulate between short-run and long-run average cost curves when these are not you-shaped as suggested by the modern theories?
what kind of relationship would you postulate between short run and long run average cost curves when these are not u shaped as suggested by the modern theories.
Do fixed and variable costs affect short-run marginal cost?
Fixed costs do not affect short-run marginal cost because they are just that- fixed. They are not dependent on quantity when it changes and does not vary directly with the level of output. Variable costs, however, do affect short-run marginal costs.
What kind of relationship would you postulate between short-run and long average cost curves when these are not U-shaped as suggested by the modern theories?
what kind of relationship would you postulate between short run and long run average cost curves when these are not u shaped as suggested by the modern theories.
What happens to prices and output in short run when Short-run aggregate demand shifts left?
Prices rise, output rises
What is short run marginal cost?
Short run marginal cost (SRMC) is the additional cost incurred by producing one more unit of a good or service in the short run, where at least one factor of production is fixed. It reflects changes in total cost resulting from varying output levels, primarily influenced by variable costs, such as labor and raw materials. SRMC is crucial for firms in making production decisions, as it helps determine pricing and output levels to maximize profit.
What is short-run cost function?
what is short-run cost function
