12 Economic Costs (1)

Some a firm can adjust the number of workers but not

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Unformatted text preview: n adjust the number of workers but not the firm plant’s capacity in the short run. plant’s The long run is a time period sufficiently long The long to enable producers to change the quantities of all the resources they employ. all 3 Short Run Costs Total Cost: the cost of all the factors of Total production used by a firm. production TC = FC + VC Total Fixed Costs are the costs of Total fixed factors of production used by a firm. These factors can not be changed in the short run. Examples include capital, cost of land, etc. ****There are no fixed costs in the long run. long Total Variable Costs are the Total cost of the variable factors of production used by a firm. Example quantity of labor employed. labor 4 Total Costs...
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