Question

In: Economics

A- What is the distinction made by economists between the short run and the long run?...

A- What is the distinction made by economists between the short run and the long run? Why is it important?

b. Cite and explain examples from various sized firms and/or various products in the garment industry.

Implicit and Explicit Costs

(a) Why do economists look at implicit costs?

(b) Look at two businesses (one big and one small) and for each identify what might be their implicit costs. Be specific!

PRODUCTION HOMEWORK QUESTIONS

1.What is the marginal product of labor (MP or MPP)? Why is the curve shaped the way it is?

2.Explain and describe each of the four production relationships.

3.Indicate whether each of the following are long-run or short-run choices. Explain why.

A law partnership signs a 5 year lease for an office complex.

A jeans company asks its assembly-line workers to work an extra shift this week.

A local oil refinery plans a complete restructuring of its production process, including relocating the plant.

The local college decides to offer an extra section of micro-economics this summer.

A farmer increases the quantity of water applied to his fields.

The university hires a new football coach on a three year contract.

The corner hot dog vender decides to buy an additional cart.

4.In what two ways can “returns to scale” be used. Give an example of each way.

Expert Solution

Rahul Sunny answered 2 years ago

a. What is the distinction made by economists between the short run and the long run?...

a. What is the distinction made by economists between the short run and the long run? Why is it important? b. Cite and explain examples from various sized firms and/or various products in the garment industry

a) What is the distinction between the short run and the long run? In reality, does...

a) What is the distinction between the short run and the long run? In reality, does a company operate in the short run or in the long run? How do you know? Is it a reasonable distinction to have for a company? b) With respect to profit and loss, what is the economic goal of business? How does maximizing profits accomplish that goal? What should, in your opinion, be the goal of a business?

What is the distinction between the short run and the long run? In reality, does a...

What is the distinction between the short run and the long run? In reality, does a company operate in the short run or in the long run? How do you know? Is it a reasonable distinction to have for a company? With respect to profit and loss, what is the economic goal of business? How does maximizing profits accomplish that goal? What should, in your opinion, be the goal of a business? Identify three types of industries that fit into...

2. What is the distinction between the microeconomic short run and the microeconomic long run? How...

2. What is the distinction between the microeconomic short run and the microeconomic long run? How do these definitions relate to specific periods of calendar time?

Why can the distinction between fixed costs and variable costs be made in the short run?...

Why can the distinction between fixed costs and variable costs be made in the short run? List ten costs you have running a restaurant and classify the following as fixed or variable costs:

What is the difference in the short run and the long run? In the short run,...

What is the difference in the short run and the long run? In the short run, A. at least one of the firm's inputs is fixed, while in the long run, at least one of the firm's inputs is variable. B. at least one of the firm's inputs is fixed, while in the long run, the firm is either able to vary all its inputs, adopt new technology, or change the size of its physical plant. C. at least one...

Difference between production in the short run and production in the long run: 1. What is...

Difference between production in the short run and production in the long run: 1. What is the difference between the short-run and long-run? Is there a fixed time period associated with short-run and long-run? Explain why or why not. 2. What happens to output in the short-run as production increases? What inputs are "fixed" and which input is variable in the short-run? How does this explain diminishing marginal productivity? 3. What might happen to output in the long-run as the...

1. What is the difference between the short run and the long run for the profit-maximizing...

1. What is the difference between the short run and the long run for the profit-maximizing firm? 2. The number of repairs produced by a computer retail shop depends on the number of workers as follows: Number of Workers Number of Repair Marginal Product (what each additional worker adds to the total production) Average Product (the number of units per worker) 0 0 - 1 8 2 20 3 35 4 45 5 52 6 57 7 60 a. For...

a) What is the difference between the short-run AS curve and the long-run AS curve? Define...

a) What is the difference between the short-run AS curve and the long-run AS curve? Define each and explain the underlying assumptions. What would cause each to shift either to the right or left? b) What does the concept “sticky wages” refer to? Explain its implications within the AD/AS model.

Short answer: What is a barter? What factors made the barter inconvenient in the long run?