Asked by
Fiere Brown
on Nov 04, 2024
Verified
Profits in the short run attract resources to industries in the long run, allowing them to expand.
Short Run
A period in economics during which some factors of production are fixed, making it impossible to change the level of output quickly.
Long Run
A period in which all factors of production and costs are variable, allowing for full adjustment to changes.
Expand
To increase in size, number, or scope, such as a business growing its operations or a market increasing its reach.
- Gain insight into the factors and situations prompting companies to initiate or cease operations within a market.
- Recognize the process and outcomes of resource allocation in perfectly competitive markets.
Verified Answer
DB
Learning Objectives
- Gain insight into the factors and situations prompting companies to initiate or cease operations within a market.
- Recognize the process and outcomes of resource allocation in perfectly competitive markets.