微观经济lecture11学习.pptxVIP

What do General Motors, Hydro One, and Campus Sweaters, have in common? Like every firm, They must decide how much to produce. How many people to employ. How much and what type of capital equipment to use. How do firms make these decisions?;Decision Time Frames;The Short Run The short run is a time frame in which the quantity of one or more resources used in production is fixed. For most firms, the capital, called the firm’s plant, is fixed in the short run. Other resources used by the firm (such as labour, raw materials, and energy) can be changed in the short run. Short-run decisi