Flashcards in Production and Costs in the Long Run 7.4-1 ~ Benjamin Rainwater Deck (12):
The long run is
a time period in which there are no fixed inputs and therefore no fixed
A capital-intensive technology is
one that uses more capital relative to labor.
A labor-intensive technology is
one that uses more labor relative to capital.
In the short run, almost all the
manufacturing inputs are...
The only variable input is...
In the long run, the firm has enough time to
vary all inputs including
machinery, tools, and such.
In the long run, there are no fixed inputs. True or False?
In the long run, the firm also gets to choose
the size of its operation. This is called the
In the short run, is scale fixed?
In the long run, the firm can choose either a
capital-intensive technology or a labor intensive
technology. The choice depends
In the short run, the firm can only add or