Microeconomics

The short run is a time frame in which the quantity of one or more resources used in production is fixed, while the long run is a time frame in which all resources can be varied.

In the short run, a firm's output can change by varying the quantity of labor employed while other resources remain fixed.

A firm's short-run cost curves are derived by examining the relationship between a firm's output and costs in the short run.

<p>Decision time frames in microeconomics refer to the distinction between the short run and the long run, where some decisions are easily reversed in the short run, while all resources can be varied in the long run.</p> Signup and view all the answers

<p>For most firms, the capital (the firm's plant) is fixed in the short run, while other resources such as labor, raw materials, and energy can be changed.</p> Signup and view all the answers