Question

When a firm operates in the short-run, its cost of production may not be minimized”. Justify your position with the statement [You do not need to draw figure]

Answer 1

In the short run, it is unimaginable to expect to expand the components of creation.

For example, land, capital, apparatus, and so forth, and thus we can say that in the short run, the organizations are having restricted choices to delivered merchandise and to build its creation - since, in the short run, the main factor of creation can be changed that is work and all different elements of creation can't be changed.

In this way in the short run, the firm can't limit its creation by delivering effectively, and subsequently firms are encountering significant expenses in the short-run than in since quite a while ago run.