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Describe the Simple Structure. Discuss Its Advantages and Disadvantages

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Essay

Describe the simple structure. Discuss its advantages and disadvantages.


Definitions:

Long Run

An economic period sufficiently long enough to allow all inputs or factors of production to be varied or adjusted, as opposed to the short run where some inputs are fixed.

Marginal Cost

The added expense resulting from creating one more unit of a good or service.

Marginal Revenue

The additional income from selling one more unit of a good or service.

Short-run Supply Curve

A graphical representation showing the quantity of goods a firm is willing and able to supply at different prices over a short period, assuming some inputs are fixed.

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