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Introduction to Economics 1
INTRODUCTION TO ECONOMICS I (İKTİSADA GİRİŞ I) - (İNGİLİZCE) Dersi The Firm and the Cost of Production soru cevapları
INTRODUCTION TO ECONOMICS I (İKTİSADA GİRİŞ I) - (İNGİLİZCE) Dersi The Firm and the Cost of Production soru detayı:
SORU:
Compare the short run and the long run in production.
CEVAP:
In the shortrun, capital is fixed and the firm can only increase labor to increase production but diminishing returns sets in eventually as discussed earlier. However, in the long run, the firm can change the amount of capital it uses as well. When more capital is used for a given amount of labor employed, output will increase.