What Are the Two 'Conversion Style' Options for Switching from the Old

question 44

Essay

What are the two 'conversion style' options for switching from the old system to the new system - and what are the advantages and disadvantages to each?

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Definitions:

Long Run

A period in economic theory where all factors of production and costs are variable, allowing companies to adjust to market conditions fully.

Perfect Competitor

A theoretical market structure where many firms sell an identical product, entry and exit from the market are easy, and no single seller can influence the market price.

Long Run

A period of time in which all factors of production and costs are variable, and companies can adjust all inputs.

Perfect Competitor

A theoretical market structure characterized by many buyers and sellers, freely available information, and no barriers to entry or exit.