Production Choices and Costs: The Long Run

Read this section to learn about the behavior of the producer in the long run. Take a moment to read through the stated learning outcomes for this chapter of the text, which you can find at the beginning of each section. These outcomes should be your goals as you read through the chapter. Attempt the "Try It" problems at the end of the section before checking your answers.

ANSWERS TO TRY IT! PROBLEMS

  1. To produce 9 jackets, Acme uses 4 units of labor.
  2. In the long run, Acme will substitute capital for labor. It cannot make this adjustment in the short run, because its capital is fixed in the short run.