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What is very long period in economics?
The very long run is a production time period that is so long that all productive inputs are variable, including those that are variable in the long run (labor and capital) as well as those that change slowly and/or are beyond the control of the firm.
Why is the long run average cost curve also called the planning curve?
A long run average cost curve is known as a planning curve. This is because a firm plans to produce an output in the long run by choosing a plant on the long run average cost curve corresponding to the output.
How long a period is the long run?
This is a time period of fewer than four-six months. Very long run – Where all factors of production are variable, and additional factors outside the control of the firm can change, e.g. technology, government policy. A period of several years.
What is a long run concept?
What Is the Long Run? The long run is a period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all costs, whereas in the short run firms are only able to influence prices through adjustments made to production levels.
What is long period?
A menstrual period that lasts longer than seven days is considered a long period. Your doctor may refer to a period that lasts longer than a week as menorrhagia. You may also be diagnosed with menorrhagia if you experience unusually heavy bleeding that lasts less than a week.
What is the difference between short run and long run in economics?
“The short run is a period of time in which the quantity of at least one input is fixed and the quantities of the other inputs can be varied. The long run is a period of time in which the quantities of all inputs can be varied.
Why is a long run average cost curve is different from a short run average cost curve?
The chief difference between long- and short-run costs is there are no fixed factors in the long run. There are thus no fixed costs. The long-run average cost (LRAC) curve shows the firm’s lowest cost per unit at each level of output, assuming that all factors of production are variable.
What is long run production function in economics?
Long run production function refers to that time period in which all the inputs of the firm are variable. It can operate at various activity levels because the firm can change and adjust all the factors of production and level of output produced according to the business environment.