The long run is a period of time: that is too short to change the size of a firm's plant. that is long enough to permit changes in all the firm's inputs, both fixed and variable. in which production occurs beyond one year. in which production occurs beyond five years.

Q: Consider the following production function: Q = 2K + 5L. The price of capital is €10 per unit and…

A: Production function: Q = 2K + 5L The above production function states that inputs K and L are…

Q: Draw the production function graph illustration the three stages (diminishing returns) in the…

A: Incrementing returns, falling returns and negative returns are the three stages of production. The…

Q: The long run is different from the short run in that, in the long run, a. Resources prices are…

A: The SR {"short-run"} is described as a concept in which one input factor is fixed and the other…

Q: Economies to scale refer to Select one: a. the point at which marginal cost equals average cost.…

A: "Long-run average cost curve is used to determine the scale of production process."

Q: A firm uses two inputs in production: capital and labor. In the short run, the firm cannot adjust…

A: A) The estimated gross cost curve of the business goes up as the cost of renting capital changes,…

Q: If a firm uses labor to produce output, the firm’s production function depicts the relationship…

A: Answer- the number of workers and quantity of output.

Q: n a self-regulating economy “X”, labor supply is 40 million but labor demand is 10 million. What…

A: Labor: Labor is the measure of physical, mental, and social exertion used to create labor and…

Q: A 15 per cent increase in all inputs leads to only a 5 per cent increase in the output. Are the…

A: Percentage increase in input results to a less than proportionate increase in output is the known as…

Q: 16. Consider the production process undertaken by a firm. Which of the following would imply that…

A: A long run is a situation where inputs are variable and prices are adjusted. Firms can expand or…

Q: A firm with decreasing returns to scale can expect to produce       [a. more than, b. less than,…

A: Returns to scale Returns to scale is a metric for determining how efficient a production function is…

Q: Which of the following would be exhibited if a doubling of output can be achieved without doubling…

A: Usually, this happens only with increase in the productivity or technological advancements.

Q: What is the increase in output that results from an increase in all of a firm’s outputs by some…

A: The increase in output that results from an increase in all of a firm's output by some proportion…

Q: Which of the following is a cause of diminishing marginal productivity? a.In the long run, labor…

A: Marginal Productivity  Marginal productivity or marginal product is the additional output, return,…

Q: The production function is the relationship between the maximum amount of output that can be…

A: A production function represents how firm transforms inputs into outputs.

Q: (9) The short run is a time period in which: (a) all resources are fixed. (b) the level of output is…

A: As you have not mentioned the exact question as per our policy I am answering first three questions.

Q: Output is produced according to a production process given by: Q = 4LK, where L is the quantity of…

A: A production function represents the relationship of the manufacturing output with the given factors…

Q: Which of the following statements is (are) correct? (x)  Economists distinguish between short run…

A: Short run and Long run are related to the time period of a business or firm.

Q: If the production function is Q = 30 + 22L + 44K, what’s the most you can produce with 9 workers (L)…

A: Production function is the explanation of procedure used in producing the goods and services in the…

Q: In economics, the short run is a period of time  A of one year or less. B in which all inputs are…

A: In short run in economics, the factors of production are such that they cannot be changed quickly…

Q: In economics, "the long-run" is referred to as a period in which the amounts of capital are…

A: In economics, period (time) is generally divided into 2 parts i.e. short-run period and long-run…

Q: For an increase in output, average costs change by more in the short run than in the long run, but…

A: Average Price The total cost is divided by the number of things produced to get the average cost.…

Q: The marginal product of labor in the production of computer chips is 50 chips per hour. The marginal…

A: Marginal product of input is the additional output produced by employing an additional unit of the…

Q: Think about running a restaurant. It is likely the case that:   a.  cooks and hosts are variable…

A: Variable cost means the cost which occurs due to the employment of variable inputs/resources while…

Q: For an increase in output, average costs change by more in the short-run than in the long-run, but…

A: find below the answer.

Q: The period of a time when a firm is able to change all of inputs factors of production is called…

A: The period of time is important from the point of view of the producer, as time period limit his…

Q: Suppose a firm has a Cobb Douglas production function and is initially producing 50 units of output…

A: The Cobb-Douglas production function formula for a single good with two factors of production is…

Q: What stage of production is the increase in output that results from increase in a firm's outputs by…

A: When the increase in output that results from increase in a firm's output by some proportion it is…

Q: Draw a well behaved production function and show the 3 stages of production. What distinguishes…

A: The production function shows the technical relationship between factor of production and final…

Q: the main difference between the short run and the long run

A: Short run is a time period in which there are fixed costs and variable cost Fixed cost means the…

Q: The short run is a time period that is A) long enough to change the size of the firm's plant. B) too…

A: Time period refers to the amount of time required for a factor to change. Time period influences the…

Q: Question 2 In the short run, a firm that produces and sells widgets is able to... Group of…

A: "In the production process with two inputs capital and labor, short run is defined as a period in…

Q: Based on your understanding, does additional input of Labor entails a steady increase in the output…

A: A production function describes the relationship between the physical output of a production process…

Q: What best describes the long run? a period of time that labor can change a period longer than six…

A: The long run is a span of time during which all production parameters and costs are subject to…

Q: The production period during which the firm can alter its use of all inputs is known as the Olong…

A: The goods utilised in the creation of other commodities and services are referred to as inputs.…

Q: A firm pays each worker (1.e, each unit of labour L) a wage w 4 and pays for each computer (i.e.…

A: Ans. Option (a) Firm employs 6 workers and buys no computers. We are given, w = 4 r = 3 Production…

Q: For an increase in output, average costs change by more in the short run than in the long run, but…

A: Average cost is the total cost per unit of output.  AC=TCQ

Q: When the law of diminishing returns takes effect   a. a firm must always try to add the same…

A: The Law of diminishing returns is a short-run concept.  It states that in the short run, when one…

Q: Which of the following are short-run and which are longrun adjustments? IBM hires 200 more software…

A: Short run is a period when a distinction can be made between fixed costs and variable costs. It is…

Q: Refer to the figure at right. An increase in production from q, to q, A. is more costly in the short…

A: In the short run at least one input is fixed and in long run all inputs are variable.

Q: In production, the difference between the long run and short run is some inputs are fixed in the…

A: The factors of production are the factors that are being used in the process of production by the…

Q: We can describe inputs as either fixed or variable. Thinking about a company that assembles cars,…

A: In the production process, some of the resources are considered as fixed while others are variable…

Q: What is the difference between production in the short run and production in the long run? Explain…

A:

Q: True or False: For an increase in output, average costs change by more in the short-run than in the…

A: Average cost: The average cost for a firm can be defined as the cost incurred per unit of output for…

Q: A firm hires two workers and rents 15 acres of land for a season. It produces 150,000 bushels of…

A: Returns to scale state the effect on the output level due to the increase in the production inputs.