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

Change in demand, Change in demand: change in quantity demanded occurs...

Change in demand: change in quantity demanded occurs when the consumption of a commodity increases or decreases as a result a change in the price of the commodity, when all ot

Differentiate between real and nominal variables, Differentiate between rea...

Differentiate between real and nominal variables.  In economics, the distinction among nominal and real numbers is often made. Nominal variables -- like nominal wages, interest

Rational producer, would a rational producer be concerned with the average ...

would a rational producer be concerned with the average or marginal product of an input in dec

Microeconomics, Ways in which the markets fail and discuss why government i...

Ways in which the markets fail and discuss why government intervention is justified and whether government intervention works or not.

Sources of economic growth, Sources of Economic growth: Human resourc...

Sources of Economic growth: Human resources: Investment in human capital is considered as an important factor for economic growth. This is done by increasing the quality of

Market supply and increase in supply, Market supply and Increase in supply:...

Market supply and Increase in supply: Market supply is the total quantity of a product that all firms in an industry are willing to offer for sale at a given market price an

Applications, hey, I just have a question on how to apply things like ATC a...

hey, I just have a question on how to apply things like ATC and AVC in a problem. im just not too sure about what happens to the quantity of a particular good when asked. this is p

Demand curve, how does the charging the monoply a specific tax per unit aff...

how does the charging the monoply a specific tax per unit affect the monopoly optmum and 5the welfare of consumer

Tax incidence, if the inverse demand curve is p=120-Q and the marginal cost...

if the inverse demand curve is p=120-Q and the marginal cost constant at 10, how does the monopoly a specific tax of 10 per unif affect the monopoly optimum and welfare of consumer

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