How does a firm determine its demand for capital funds

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Q. "The short-run elasticity of demand for gasoline is estimated to be about $15.00, but the long-run elasticity is about 0.9. Explain, based on the determinants of elasticity, why the short-run elasticity is so low (inelastic), but why elasticity is far higher (though still inelastic) in the long run."

Q. Explain how does a firm determine its prices also the quantity of labor need in the resource market during a specific period?

How does a firm determine its demand for capital funds during a specific period?

What is the ideal relationship between knowledge of costs and knowledge of revenues for a firm? In your response, explain and justify your conclusions and provide examples to support such conclusions.

Reference no: EM1347788

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