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

Markets, Syndicated and organized oligopoly

Syndicated and organized oligopoly

Costs of education, Costs of Education The resources employed to produ...

Costs of Education The resources employed to produce a good or service measured in monetary terms is known as the ‘cost of the product’. If the measurement is per unit of serv

Choosing output in long run, Choosing Output in Long Run * In long run,...

Choosing Output in Long Run * In long run, a firm can change all its inputs, including size of the plant. * We are taking free entry and free exit. * Accounting

Production possibility frontier, Halala is a small country that uses most o...

Halala is a small country that uses most of Its resources to produce fruits and vegetables. If the country produces only fruits it is able to produce 8000kg of fruit per year. If i

Elasticity of demand , The Bushman Cinema is the only movie theatre locate...

The Bushman Cinema is the only movie theatre located in the medium-size country town of Sleepy Hollow.  The owner wants to charge an admission fee of $10 per seat and past experien

Gasoline rationing, Gasoline Rationing - In the year 1974 and again in ...

Gasoline Rationing - In the year 1974 and again in the year 1979, the government imposed price controls on gasoline. - This resulted in scarcity and gasoline was rationed.

Economic cycle, Economic Cycle The economic cycle is the long-standing...

Economic Cycle The economic cycle is the long-standing sample of alternating times of economic growth (expansion) and decline (recession), followed by changing economic indica

Claudia, Directions: You should legibly handwrite or type the answers to th...

Directions: You should legibly handwrite or type the answers to the following questions on a separate sheet of paper. These must be submitted in class (not via email unless you hav

Microeconomics, Consider the market for purple magic markers. The demand fo...

Consider the market for purple magic markers. The demand for purple magic markers is perfectly elastic and the supply is upward sloping. If sellers of purple magic markers are taxe

What are the possibilities of returns to scale in production, What are the ...

What are the possibilities of returns to scale in production technology? Three possibilities are there as: technology exhibits (a) constant returns to scale; (b) decreasing ret

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