he supply curve overtime is more elastic than the supply curve over the short period of time because, given sufficient time * production techniques become more expensive. new firms can enter the industry and old firms can increase their plant size. producers become more competitive. consumers become more demanding.
The supply curve overtime is more elastic than the supply curve over the short period of time because, given sufficient time *
production techniques become more expensive.
new firms can enter the industry and old firms can increase their plant size.
producers become more competitive.
consumers become more demanding.
Economic profit is frequently *
greater than total revenue.
defined as total revenue minus total fixed cost.
irrelevant to the owner of a firm who is concerned instead with accounting profits.
less than accounting profit.
Diminishing returns *
characterize all stages of production.
eventually occur in all short-run production situations.
are always associated with declining average product in the short-run.
exist in the short run, because as additional units of an input are hired, the firm has to accept less satisfactory units.
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