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Scarcity exiss in short run because the world's resources are in finite supply.
Waqar Hussain
Wiki User
∙ 10y agoScarcity exiss in short run because the world's resources are in finite supply.
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Why is it that short run aggregate supply curve is normal?
Because the supply curve basically is for the short run, and not permanent for the long run. That's why it's considered normal.
What can result when the available resources do not meet the needs?
When the Supply of resources does not match or exceed the Demand, Prices rise. In the long run, either the Supply must increase, or Demand decreased in order to maintain Economic Balance without runaway Inflation.
Is the decision to shutdown made in the short run or long run?
It is made in the short run
Why do wages and row material affect short-run aggregate supply but not long-run aggregate supply?
wages and raw material effect short run aggregate supply because of productivity factor but money is neutral in the long run so will never effect long run
WHAT IS Short run consumption function?
short run consumption function
Do Nike shoes run short?
Yes. nike shoes run short i had 2 get a half size down because they run short
Why is it that short run aggregate supply curve is normal?
Because the supply curve basically is for the short run, and not permanent for the long run. That's why it's considered normal.
Why is the starting position so crucial to the dash or short run.?
Because its boring
Why are the starting position is so crucial to the dash or short run?
Because its boring
Why is fermentation more likely to occur in a long walk?
Short run because you would use up more energy in a shorter period of time.
What is the relationship between long run average cost curve and short run average ciost curve?
The relationship between these two curves is that a long run average cost curve consists of several short run average cost curves, each of which refers to a particular scale of operation. both curves are u shaped the short run avg cost curve rising because of labour specialisation and better spreading of fixed costs and it rises due to the law of diniminshing returns. the long run avg cost curve falls because of economies of scale and rises because of dis-economies. the long run avg cost curve must comprise of all the lowest points of each of the short run avg cost curve because no firm will operate at a level of higher costs in the long run than in the short run. the long run avg cost curve must always be equal to or lie below any short run avg cost curve because in the long run all factors of production can be variable.
Is the decision to shutdown made in the short run or long run?
It is made in the short run
What can result when the available resources do not meet the needs?
When the Supply of resources does not match or exceed the Demand, Prices rise. In the long run, either the Supply must increase, or Demand decreased in order to maintain Economic Balance without runaway Inflation.
Why do wages and row material affect short-run aggregate supply but not long-run aggregate supply?
wages and raw material effect short run aggregate supply because of productivity factor but money is neutral in the long run so will never effect long run
WHAT IS Short run consumption function?
short run consumption function
What is short-run cost function?
what is short-run cost function
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.
