Practice The Short Run And The Long Run (3.2) - Production and Costs - CBSE 12 Introductory Microeconomics
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The Short Run and The Long Run

Practice - The Short Run and The Long Run

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Learning

Practice Questions

Test your understanding with targeted questions

Question 1 Easy

Define short run in economics.

💡 Hint: Focus on the limitations present in short-term adjustments.

Question 2 Easy

What happens to production factors in the long run?

💡 Hint: Think about flexibility in adjusting resources.

4 more questions available

Interactive Quizzes

Quick quizzes to reinforce your learning

Question 1

In the short run, which factor remains fixed?

Labor
Capital
Both

💡 Hint: Think about how businesses manage their resources in the short term.

Question 2

True or False: In the long run, all factors of production can be changed.

True
False

💡 Hint: Recall the definition of long run in production.

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Challenge Problems

Push your limits with advanced challenges

Challenge 1 Hard

Consider a firm operating in the short run. If it can only change its labor input while its equipment remains constant, discuss the implications for production efficiency.

💡 Hint: Reflect on the law of diminishing marginal returns connected to labor changes.

Challenge 2 Hard

How might the understanding of short and long run production concepts influence a business's investment decisions?

💡 Hint: Think about the benefits of flexibility vs long-term commitment.

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Reference links

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