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Costs In The Long-Run

Part I of Essay
Just as some costs are fixed and others are variable so are the inputs, or resources, or, factors of production used by the firm and this has an impact on its short and long run operations. These time periods (the short and the long run) do not refer to specific, chronolog ....

Part II of Essay
.... sheets per minute whether it employs 5,6 or 10 men. Decisions in the long-run are investment or planning decisions relating to the scale of production and decisions in the short run are to do with choosing an output level within the capacity constraint. With this introduction to the firms costs and output decisions we can now apply them to see how firms decide on the output to produce in order to maximise profits, the combination of actors of production to employ and how output changes in response to employing more or a ....

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Words: 330 - Pages: 2


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