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The Long Run Cost Function describes the least-cost method of producing a given amount of output. The "Long Run" part of the cost function means that all inputs are variable. In the simple case, you'd consider capital and labor. In the long run, both capital and labor may be adjusted. In the short-run, however, capital may not be adjusted. (You can't buy and install new machinery by next week, or sell a factory and be moved out.) You can, however, hire new employees to start work tomorrow.
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What is short-run cost function?
what is short-run cost function
How is a long-run average cost curve different from a short-run average cost curve?
The long-run average cost curve is longer.
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?
Explain long run L - shaped cost curve?
L shapes cost curvr is a long run cost curve
Why are firms willing to accept economic losses in the short run but not the long run?
There are sunk cost in the short run but not in long run.
What is short-run cost function?
what is short-run cost function
Will a firm that owns its own capital equipment will have the exact same long run cost function as a firm that rents capital if both firms have the same production function?
No a firm that owns its own capital equipment will not have the exact long run cost function as a firm that rents capital even if they both have the same production function.
How is a long-run average cost curve different from a short-run average cost curve?
The long-run average cost curve is longer.
Explain long run L - shaped cost curve?
L shapes cost curvr is a long run cost curve
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?
Why are firms willing to accept economic losses in the short run but not the long run?
There are sunk cost in the short run but not in long run.
The long run average total cost curve?
The long run average total cost curve is the lowest average total cost for producing each level of output. It depicts the per unit cost of producing a good or service in the long run when all inputs are variable.
Why TC equals TFC in long run?
Because in long run, all cost is variable (as i rmb)!?
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.
When is the minimum possible short-run average costs are equal to long-run average cost?
the long run curve is at a minimum point
Find the cost function from marginal cost?
Marginal cost function is a derivative of the cost function. To get the cost function, you need to do the opposite, that is, integrate.
What is the main function for sports sandals?
to run around a long stretch of grass
