Long period analysis, Microeconomics

Assignment Help:

LONG PERIOD ANALYSIS:

Long period refers to a time when all the factors are variable. Earlier in the short period analysis, we had considered capital (K) to be fixed factor. Here in this part, we assume both L and K to be variable factors. Therefore, the production function would be: 

           q = F(L, K) 

The producer can now employ L and K units at her will to produce output q as per the production technology. Therefore, in the K - L input space the producer can choose any combination of K and L to produce output.  

750_LONG PERIOD ANALYSIS.png


Related Discussions:- Long period analysis

Production, for the total product curve why is it when you reach at maximum...

for the total product curve why is it when you reach at maximum adding more input leads to decline in output?

Consumer Behavior, Ask questioThe difference between the present value of c...

Ask questioThe difference between the present value of cash inflows and the present value of cash outflows over a period of time is termed as Net Present Value. This is used for th

Production, define and explain theory of production?

define and explain theory of production?

Risk Curves, Does the curve represent if the risk is NOT taken and the line...

Does the curve represent if the risk is NOT taken and the line connecting two points on the curve represents if the risk IS taken?

Externalities, What are externalities? Give an example of positive and nega...

What are externalities? Give an example of positive and negative externality and explain why the market outcomes are inefficient in the presence of externalities?

Oligopoly, large firms charge the price which is higher than the small firm...

large firms charge the price which is higher than the small firms, contruct the diagram

Factors determine the price elasticity of supply, Factors determine the pri...

Factors determine the price elasticity of supply: The price elasticity of supply varies widely across different products. Some products have more leastic supply, while others

Disadvantages of division of labour, Disadvantages of division of labour: ...

Disadvantages of division of labour: Division of labour may also have disadvantages that may include the following: (i) Lack of Craftsmanship Division of labour does not m

Narrowness definition of commodity, Why narrowness of definition of a commo...

Why narrowness of definition of a commodity may influence price elasticity of demand

Demand theory, Ask question #Minintroduction to recent development in deman...

Ask question #Minintroduction to recent development in demand theory

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