Long period analysis, Microeconomics

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

Posted Date: 10/26/2012 6:25:59 AM | Location : United States







Related Discussions:- Long period analysis, Assignment Help, Ask Question on Long period analysis, Get Answer, Expert's Help, Long period analysis Discussions

Write discussion on Long period analysis
Your posts are moderated
Related Questions
solution for -calculate price elasticity of demand for demand function Q= 10 - 2p for decrease in price from Rs. 3 to Rs.2


Question 1: (a) Clearly illustrate the features of a perfectly competitive firm. (b) How would the same industry change if it were organized first as a competitive industr


Consumer Surplus  -Difference between maximum amounts a consumer is wishing to pay for a good and amount actually paid. The stepladder demand curve is converted into a

Consider the following information relating to the pulp market.   Demand     Supply   Output(tonnes/ da

A potential investment project has the following stream of annual social (benefits minus costs), where you may assume the project starts with the capital payment of $12,000 on Day

Hotel rooms go for $100/room and sell 1000/day; if taxed at $10/room and rate goes to $108 and 900 rooms are sold, what''s the tax revenue and dead weight loss?


In November 2010, every Mzumbe University student had an income of 150000/= per month,facing the price of meal (X) 1000/= and average price of other goods (Y) 1000/=.The initial ut