DISCUSSION 1: Short and Long Run
Let's assume that you own a fast food restaurant and you are faced with many customers each day eating in the restaurant without any tables. Describe the difference between the short run and long run in the example to bringing about more tables for the customers. How is the restaurant able to differentiate between the short run and long run?
Guided Response: Review the discussion board posts of your classmates. Discuss the difference between short run and long run with relation to costs. Respond to at least two of your classmates. Discuss how short run and long run vary in a firm.
DISCUSSION 2: Fixed and Variable Costs
After reading Chapter 8 in the text and viewing the Fixed, Variable, and Marginal Cost. video, address the following in your initial post:
• First, describe several different fixed costs and variable costs associated with operating an automobile.
• Next, assume that you would like to travel from Los Angeles to New York City by either car or plane. Which costs would you take into account in making your decision, fixed costs, variable costs or both? Make sure to explain your analysis in the decision that you have to make.
Guided Response: Review the discussion board posts of your classmates. Analyze the difference in your answer to your peers in response to the different costs that are discussed. Respond to at least two of your classmates. Discuss the different types of costs like fixed, variable, or both
REQUIRED RESOURCES
Text
Amacher, R., & Pate, J. (2013). Microeconomics principles and policies [Electronic version].
• This text is a Constellation course digital materials (CDM) title.
Article
Martin, E. R. (2014, March 27). The ethics of big data (Links to an external site.)Links to an external site.. Forbes.
Multimedia
Khnan, S. (n.d.). Fixed, variable, and marginal costs (Links to an external site.)Links to an external site. [Video file].