Long term and short term decisions.

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Answer 1

Question

Chapter 11, Problem 1SPA

To determine

Long term and short term decisions.

Expert Solution & Answer

Explanation of Solution

Laying off 44,000 retail workers in 2016 and scaling back premiere locations by the M’s store can be seen as a short run decision because only one factor of production, which is the labor is affected by the decision.

W store is shutting down its 629 stores and Amzn Company and other online retailers expanding can be seen as long run decisions as it affects all the factors of production. For instance, shutting down the retail stores implies a reduction in the size of all the factors of production say labor, capital and so on. Moreover, closing 15 percent department store without another job offer to closed store employees is also a long run decision as it affects all the factors of production.

Economics Concept Introduction

Short run: The short run refers to the time period, which does not allow a change in the capital to adjust to the market situation.

Long run: The long run refers to the time, which changes the production variable to adjust to the market situation.

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Consider the table below, which has data on insurance status and medical expenditures for different types of professors at Hypothetical University (HU), economics & criminology professors. Assume that there are an equal number of economics and criminology professors. Assume further that econ professors all have the same level of health and criminology professors all have the same level of health. There is evidence of 2021 Insured? Avg. Expenditures Insured? Avg. Expenditures 2020 Economics Professors Criminology Professors Yes. Yes $25,000 $15,000 0000 ??? ??? $28,000 $10,000 I. moral hazard because in 2021 criminology professors dropped their coverage and health expenditures went down. II. adverse selection because in response to rising premiums after 2020, the professors with lower health expenditure dropped coverage Both I and II neither I nor II

Answer 2

Question

Chapter 11, Problem 1SPA

To determine

Long term and short term decisions.

Expert Solution & Answer

Explanation of Solution

Laying off 44,000 retail workers in 2016 and scaling back premiere locations by the M’s store can be seen as a short run decision because only one factor of production, which is the labor is affected by the decision.

W store is shutting down its 629 stores and Amzn Company and other online retailers expanding can be seen as long run decisions as it affects all the factors of production. For instance, shutting down the retail stores implies a reduction in the size of all the factors of production say labor, capital and so on. Moreover, closing 15 percent department store without another job offer to closed store employees is also a long run decision as it affects all the factors of production.

Economics Concept Introduction

Short run: The short run refers to the time period, which does not allow a change in the capital to adjust to the market situation.

Long run: The long run refers to the time, which changes the production variable to adjust to the market situation.

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Answer 3

Question

Chapter 11, Problem 1SPA

To determine

Long term and short term decisions.

Expert Solution & Answer

Explanation of Solution

Laying off 44,000 retail workers in 2016 and scaling back premiere locations by the M’s store can be seen as a short run decision because only one factor of production, which is the labor is affected by the decision.

W store is shutting down its 629 stores and Amzn Company and other online retailers expanding can be seen as long run decisions as it affects all the factors of production. For instance, shutting down the retail stores implies a reduction in the size of all the factors of production say labor, capital and so on. Moreover, closing 15 percent department store without another job offer to closed store employees is also a long run decision as it affects all the factors of production.

Economics Concept Introduction

Short run: The short run refers to the time period, which does not allow a change in the capital to adjust to the market situation.

Long run: The long run refers to the time, which changes the production variable to adjust to the market situation.

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Answer 4

Question

Chapter 11, Problem 1SPA

To determine

Long term and short term decisions.

Expert Solution & Answer

Explanation of Solution

Laying off 44,000 retail workers in 2016 and scaling back premiere locations by the M’s store can be seen as a short run decision because only one factor of production, which is the labor is affected by the decision.

W store is shutting down its 629 stores and Amzn Company and other online retailers expanding can be seen as long run decisions as it affects all the factors of production. For instance, shutting down the retail stores implies a reduction in the size of all the factors of production say labor, capital and so on. Moreover, closing 15 percent department store without another job offer to closed store employees is also a long run decision as it affects all the factors of production.

Economics Concept Introduction

Short run: The short run refers to the time period, which does not allow a change in the capital to adjust to the market situation.

Long run: The long run refers to the time, which changes the production variable to adjust to the market situation.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 1SPA

To determine

Long term and short term decisions.

Expert Solution & Answer

Explanation of Solution

Laying off 44,000 retail workers in 2016 and scaling back premiere locations by the M’s store can be seen as a short run decision because only one factor of production, which is the labor is affected by the decision.

W store is shutting down its 629 stores and Amzn Company and other online retailers expanding can be seen as long run decisions as it affects all the factors of production. For instance, shutting down the retail stores implies a reduction in the size of all the factors of production say labor, capital and so on. Moreover, closing 15 percent department store without another job offer to closed store employees is also a long run decision as it affects all the factors of production.

Economics Concept Introduction

Short run: The short run refers to the time period, which does not allow a change in the capital to adjust to the market situation.

Long run: The long run refers to the time, which changes the production variable to adjust to the market situation.

Answer 6

Chapter 11, Problem 1SPA

To determine

Long term and short term decisions.

Expert Solution & Answer

Explanation of Solution

Laying off 44,000 retail workers in 2016 and scaling back premiere locations by the M’s store can be seen as a short run decision because only one factor of production, which is the labor is affected by the decision.

W store is shutting down its 629 stores and Amzn Company and other online retailers expanding can be seen as long run decisions as it affects all the factors of production. For instance, shutting down the retail stores implies a reduction in the size of all the factors of production say labor, capital and so on. Moreover, closing 15 percent department store without another job offer to closed store employees is also a long run decision as it affects all the factors of production.

Economics Concept Introduction

Short run: The short run refers to the time period, which does not allow a change in the capital to adjust to the market situation.

Long run: The long run refers to the time, which changes the production variable to adjust to the market situation.

Answer 7

Chapter 11, Problem 1SPA

To determine

Long term and short term decisions.

Answer 8

Expert Solution & Answer

Explanation of Solution

Laying off 44,000 retail workers in 2016 and scaling back premiere locations by the M’s store can be seen as a short run decision because only one factor of production, which is the labor is affected by the decision.

W store is shutting down its 629 stores and Amzn Company and other online retailers expanding can be seen as long run decisions as it affects all the factors of production. For instance, shutting down the retail stores implies a reduction in the size of all the factors of production say labor, capital and so on. Moreover, closing 15 percent department store without another job offer to closed store employees is also a long run decision as it affects all the factors of production.