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Unformatted text preview: n adjust the number of workers but not the
plant’s capacity in the short run.
plant’s The long run is a time period sufficiently long
to enable producers to change the quantities of
all the resources they employ.
3 Short Run Costs Total Cost: the cost of all the factors of
production used by a firm.
production TC = FC + VC Total Fixed Costs are the costs of
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 Total Variable Costs are the
cost of the variable factors
of production used by a
firm. Example quantity of
4 Total Costs...
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- Spring '14