Answer: 1. Both Short Run and Long Run
2. Both Short Run and Long Run
3. Long Run
4. Long Run
5. Short Run
6. Long Run
7. Both Short Run and Long Run
Explanation:
In Economics, the Short run refers to a period where wages and prices of other inputs are considered inflexible or rather hard to change whereas in the LONG RUN, these same inputs can be adjusted because they have had time to adjust.
In the both the Short and the Long Run, a company is capable of producing a differentiated product as well as maximising profit through MR=MC.
A firm can only however earn zero Economic profit in the long run as other firms come into the market and competition reaches its peak level.
It is also only in the Long Run that all factors of production are variable because they have time to adjust and adapt.
It is only in the Short run that at least one input is fixed. In the long run, all factors are variable.
In both the long and short run, the price charged to consumers can be higher than the Marginal Cost.
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Answer:
A firm operating under monopolistic display certain characteristics short run which changes in the long run.
Explanation:
1. The firm produces a differentiated product in the short run.
2. The firm maximizes profits in the short run.
3. The firm earns zero economic profit in the Long run.
4. All factors of production (inputs) are variable in the short run.
5. At least one factor of production (an input) is fixed in the long run.
6. The LRATC curve is tangent to the demand curve in the long run.
7. The price charged to consumers is higher than marginal cost in the long run.
