Question

Explain the equilibrium of a firm under perfect competition in the short run and long run

Answer 1

❧Hi my dear friend,

Short-Run Equilibrium of the Firm: A firm is in equilibrium in the short-run when it has no tendency to expand or contract its output and wants to earn maximum profit or to incur minimum losses. The short-run is a period of time in which the firm can vary its output by changing the variable factors of production.

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