The short run and long run costs the professor might face. Concept Introduction: Short run: The short run denotes the time of an economic activity. In the short run one factor remains fixed and all other factors become variable. For an example if we assume the capital as the fixed element all other factors of production apart from capital remains variable, therefore if we want to increase the productivity we cannot change the capital but change the other factors. In the short run production function results in a diminishing marginal productivity, so the marginal costs begins to rise quickly. Long run: The long run is a situation in which all the factors of production are variable. So in case if we want to increase the output we can vary the all factors of production in the economy. In the long run the general price level, wages adjust fully to the economy.

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Answer 1

Question

Chapter 22, Problem 1P

To determine

The short run and long run costs the professor might face.

Concept Introduction:

Short run: The short run denotes the time of an economic activity. In the short run one factor remains fixed and all other factors become variable. For an example if we assume the capital as the fixed element all other factors of production apart from capital remains variable, therefore if we want to increase the productivity we cannot change the capital but change the other factors. In the short run production function results in a diminishing marginal productivity, so the marginal costs begins to rise quickly.

Long run: The long run is a situation in which all the factors of production are variable. So in case if we want to increase the output we can vary the all factors of production in the economy. In the long run the general price level, wages adjust fully to the economy.

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Answer 2

Question

Chapter 22, Problem 1P

To determine

The short run and long run costs the professor might face.

Concept Introduction:

Short run: The short run denotes the time of an economic activity. In the short run one factor remains fixed and all other factors become variable. For an example if we assume the capital as the fixed element all other factors of production apart from capital remains variable, therefore if we want to increase the productivity we cannot change the capital but change the other factors. In the short run production function results in a diminishing marginal productivity, so the marginal costs begins to rise quickly.

Long run: The long run is a situation in which all the factors of production are variable. So in case if we want to increase the output we can vary the all factors of production in the economy. In the long run the general price level, wages adjust fully to the economy.

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Answer 3

Question

Chapter 22, Problem 1P

To determine

The short run and long run costs the professor might face.

Concept Introduction:

Short run: The short run denotes the time of an economic activity. In the short run one factor remains fixed and all other factors become variable. For an example if we assume the capital as the fixed element all other factors of production apart from capital remains variable, therefore if we want to increase the productivity we cannot change the capital but change the other factors. In the short run production function results in a diminishing marginal productivity, so the marginal costs begins to rise quickly.

Long run: The long run is a situation in which all the factors of production are variable. So in case if we want to increase the output we can vary the all factors of production in the economy. In the long run the general price level, wages adjust fully to the economy.

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Answer 4

Question

Chapter 22, Problem 1P

To determine

The short run and long run costs the professor might face.

Concept Introduction:

Short run: The short run denotes the time of an economic activity. In the short run one factor remains fixed and all other factors become variable. For an example if we assume the capital as the fixed element all other factors of production apart from capital remains variable, therefore if we want to increase the productivity we cannot change the capital but change the other factors. In the short run production function results in a diminishing marginal productivity, so the marginal costs begins to rise quickly.

Long run: The long run is a situation in which all the factors of production are variable. So in case if we want to increase the output we can vary the all factors of production in the economy. In the long run the general price level, wages adjust fully to the economy.

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Answer 5

Chapter 22, Problem 1P

To determine

The short run and long run costs the professor might face.

Concept Introduction:

Short run: The short run denotes the time of an economic activity. In the short run one factor remains fixed and all other factors become variable. For an example if we assume the capital as the fixed element all other factors of production apart from capital remains variable, therefore if we want to increase the productivity we cannot change the capital but change the other factors. In the short run production function results in a diminishing marginal productivity, so the marginal costs begins to rise quickly.

Long run: The long run is a situation in which all the factors of production are variable. So in case if we want to increase the output we can vary the all factors of production in the economy. In the long run the general price level, wages adjust fully to the economy.

Answer 6

Chapter 22, Problem 1P

To determine

The short run and long run costs the professor might face.

Concept Introduction:

Short run: The short run denotes the time of an economic activity. In the short run one factor remains fixed and all other factors become variable. For an example if we assume the capital as the fixed element all other factors of production apart from capital remains variable, therefore if we want to increase the productivity we cannot change the capital but change the other factors. In the short run production function results in a diminishing marginal productivity, so the marginal costs begins to rise quickly.

Long run: The long run is a situation in which all the factors of production are variable. So in case if we want to increase the output we can vary the all factors of production in the economy. In the long run the general price level, wages adjust fully to the economy.

Answer 7

Chapter 22, Problem 1P

To determine

The short run and long run costs the professor might face.

Concept Introduction:

Short run: The short run denotes the time of an economic activity. In the short run one factor remains fixed and all other factors become variable. For an example if we assume the capital as the fixed element all other factors of production apart from capital remains variable, therefore if we want to increase the productivity we cannot change the capital but change the other factors. In the short run production function results in a diminishing marginal productivity, so the marginal costs begins to rise quickly.

Long run: The long run is a situation in which all the factors of production are variable. So in case if we want to increase the output we can vary the all factors of production in the economy. In the long run the general price level, wages adjust fully to the economy.

Answer 8

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Answer 9

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Answer 10

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Answer 11

Ch. 22 - Prob. 22.1LO Ch. 22 - Prob. 22.2LO Ch. 22 - Prob. 22.3LO Ch. 22 - Prob. 22.4LO Ch. 22 - Prob. AFCT Ch. 22 - Prob. BFCT Ch. 22 - Prob. CFCT Ch. 22 - Prob. DFCT Ch. 22 - Prob. EFCT Ch. 22 - Prob. 1CTQ

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