Explain about long run production function, Managerial Economics

Assignment Help:

Q. Explain about Long run production function?

Long run is a phase adequately long so that all factors together with capital can be changed.

The factors that can be increased in the short run are known as variable factors, because they can be easily changed in a short period of time. Henceforth the level of production can be increased within the limits of existing plant capacity during the short run. So the short run production function proves that in short run the output can be increased by altering the variable factors, keeping fixed factors constant. Or we can say that in the short run output is produced with a given scale of production, which is, with a given size of plant. Behaviour of production in the short-run where output can be increased by increasing one variable factor keeping other factors fixed is known as law of variable proportions. Size of plant can be varied in the long run and, hence, the scale of production can be varied in the long run. Long run analysis of the laws of production is referred to as laws of returns to scale.


Related Discussions:- Explain about long run production function

Describe the forecasting method in managerial economics, Describe the Forec...

Describe the Forecasting method in managerial economics It is a technique or a method to predict many future aspects of a business or any other operation. For illustration, a r

Business cycle, BUSINESS CYCLES Meaning: The business cycle is ...

BUSINESS CYCLES Meaning: The business cycle is the tendency for output and employment to fluctuate around their long-term trends.  The figure below presents a stylised

Mba programme, write a note on marris growth maximising model?

write a note on marris growth maximising model?

Define managerial economics according to mcnair and meriam, Define Manageri...

Define Managerial economics according to McNair and Meriam McNair and Meriam:  "Managerial economics comprises the use of economic modes of thought to analyse business situatio

Model specification - search and matching model, Model Specification   ...

Model Specification   We proceed with the model specification in the following steps. 1)  The economy is composed of competitive firms (F  in number) and identical workers

Monopolistic versus perfect competition, firms both in monopolistic and per...

firms both in monopolistic and perfect competition tend to make normal profits but why do they criticize only monopolistic competition

Enumerate the scope of managerial economics, Enumerate the Scope of manager...

Enumerate the Scope of managerial economics The scope of managerial economics contains following subjects:  1. The Theory of demand 2. The Theory of production 3. The

Price output determination , Discuss the price output determination using p...

Discuss the price output determination using profit maximization under perfect  competition in the short run.

Keynes theory , Keynes Theory Keynes views about trade cycle entitled ...

Keynes Theory Keynes views about trade cycle entitled notes on the trade cycle of his classic the general theory of employment interest and money published in 1936. Although K

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd