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Q: Theoretically and graphically explain how firm choose optimum combination of inputs in short run and in the long run.

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter8: Production And Costs

Section: Chapter Questions

Problem 13QP

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Concept explainers

Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.

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Q: Theoretically and graphically explain how firm choose optimum combination of inputs in short run and in the long run.

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Step 1 Optimum combination of inputs in short run

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Step 2 Least cost combination

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Step 3 Cost minimization in the long run

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Step 4 Least cost combination in the long run

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