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In order to understand short run versus long run market dynamics it s helpful to analyze how markets respond to a change in demand. The long run aggregate supply curve lras is determined by all factors of production size of the workforce size of capital stock levels of education and labour product…

An increase in demand is shown as an upward shift in demand curve d 3 d 4 which pushes the short run price to op 2 at which industry supply is oq 2. In short the long run and the short run in microeconomics are entirely dependent on the number of variable and or fixed inputs that affect the produc…

More specifically in microeconomics there are no fixed factors of production in the long run and there is. Long run consider the example of a hockey stick manufacturer. Section 2 Short Run And Long Run Profit Maximization For A Firm It is due to the diminishing cost conditions. Short run vs lon…