Why Does Economic Thinking Require Taking Both the Long-Run View

question 33

Essay

Why does economic thinking require taking both the long-run view and the short-run view?

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Definitions:

Special Order

is an order that is outside of a company’s normal production schedule and often requires unique specifications or pricing.

Vertically Integrated

A company structure where the company controls multiple stages of production, distribution, or both within the same industry.

Entire Value Chain

The full range of activities involved in designing, producing, marketing, and selling a product or service, from initial concept to delivery to the end user.

Variable Selling

Costs associated with selling that vary directly with the level of sales activity.