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

chem, What mass (in grams) of O2 gas is present in a 36.0 L container at 6...

What mass (in grams) of O2 gas is present in a 36.0 L container at 673.0 K at 23.8 atm O2 pressure if the gas is ideal?

Physical capital, Physical Capital: A tangible tool, machine, building or o...

Physical Capital: A tangible tool, machine, building or other productive asset that is used to produce other goods or services. Pollution: Many economic activities involve disch

Uncompensated demand curves, Using a graph of the compensated and uncompens...

Using a graph of the compensated and uncompensated demand curves, show how the magnitudes of the CV, EV, and  ?CS will be related to each other when there is a ceteris paribus incr

Explain how keynesian economics views the role of markets, Explain how Keyn...

Explain how Keynesian economics views the role of markets and government intervention in fighting business cycles. Keynesian economics believes markets frequently fail and gov

Resource markets, Business sell to households in the resource markets, but ...

Business sell to households in the resource markets, but households sell to businesses in the product market

Supply and demand, 1. State of the art machines at the advanced Yamaha musi...

1. State of the art machines at the advanced Yamaha musical instrument plant tune the exact sound of high caliber musical instruments (vs a certain touch, and perhaps a degree of v

What is the difference between capital and capital value, What is the diffe...

What is the difference between 'Capital' and 'Capital value'?   "The total amount of money or other resources owned or used to obtain future income or benefits." On the other h

Floating exchange rates, Floating exchange rates There are two basic s...

Floating exchange rates There are two basic systems that can be used to determine the exchange rate between one country's currency and another's: a floating exchange rates (al

Why do demand curves generally slope downward, Why do demand curves general...

Why do demand curves generally slope downward?  The demand curve slopes downward because in general, the higher the price of the good, the fewer people will need to buy it.

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