Economics 9708 · AS & A Level · 7.5

7.5 — practice question

To raise output, a firm in industry X has to install capital equipment, whereas a firm in industry Y has to research and then introduce a new technology. Which time periods are shown by these examples?

  • Aindustry X: short run; industry Y: long run
  • Bindustry X: long run; industry Y: long run
  • Cindustry X: long run; industry Y: very long run
  • Dindustry X: very long run; industry Y: very long run

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