Suppose a perfectly competitive firm uses labor and capital to produce. In the short run, the  quantity of labor is variable and the quantity of capital is fixed. The cost curve estimated by  the manufacturer based on capital and labor is: *EQUATION ATTACH AS PHOTO,  a. What is the lowest price the manufacturer expects in the long run? b. If factors prices remain constant, what is the lowest product price that firms will continue to operate in the short run? c. If the product price is $120 , how many products will the manufacturer produce in the short run?

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Short-Run Costs and Long-Run Costs

Cost of short-run and the long-run is an economic term that describes the cost involved in the production of goods in a firm in the short as well as long period.