Tag Archives | Short run

Production function: Distinguish between a short-run and a long-run production

Production function: Distinguish between a short-run and a long-run production. Production involves transformation of inputs into outputs. The output is a function of input. The functional relationship between physical inputs and physical output of a firm is called production function.

By |2011-06-17T17:56:37+00:00June 17, 2011|Economics|Comments Off on Production function: Distinguish between a short-run and a long-run production

What is the difference between Short-run and long-run in the context of the cost curves of a firm?

What is the difference between  Short-run and long-run in the context of the cost curves of a firm? On the basis of time, market is divided into short-run and long-run. The short-run is a period of time in which output can be increased or decreased by changing only variable factors.

By |2011-06-17T17:41:28+00:00June 17, 2011|Economics|Comments Off on What is the difference between Short-run and long-run in the context of the cost curves of a firm?

Why the short-run average total unit cost curve of a firm is U-shaped?

Why the short-run average total unit cost curve of a firm is U-shaped? The short run average cost is the sum total of average fixed cost and average variable cost. The average fixed cost declines as the total fixed cost is spread over a large volume of output.

By |2011-06-17T17:38:15+00:00June 17, 2011|Economics|Comments Off on Why the short-run average total unit cost curve of a firm is U-shaped?

Short period: Various types of short-run cost curves explained

Short period: Various types of short-run cost curves explained. Short period is a period of time which is not sufficient enough to allow supply to be fully adjusted with the increased demand. In short-period certain inputs can't be increased or decreased.

By |2011-06-17T17:37:00+00:00June 17, 2011|Economics|Comments Off on Short period: Various types of short-run cost curves explained

Short run and long run production functions

A producer uses various inputs for producing a commodity. The most important factor in deciding the proportion in which various inputs should be used for ensuring a given level of output is the technical requirement. How many units of various inputs are required depends upon the current state of technology.

By |2011-04-11T07:16:48+00:00April 11, 2011|Economics|Comments Off on Short run and long run production functions
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