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Discuss the THREE types of economic models.

      

Discuss the THREE types of economic models.

  

Answers


Jim
-The very long run - This is concerned with the long-run behavior of the economy. It is the domain of growth theory which focuses on the growth of productive capacity i.e. the factors of production including technology that firms use to produce goods and services are all variable.
-The long run - all factors of production are variable except technology. Q=f(K, L)
-The short run - fixed factors of production such as capital, land and technology cannot be altered. Output can be altered by altering the variable factors of production such as labor
and raw materials.
jim items answered the question on March 18, 2019 at 17:24


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