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? Discuss the difference between short run and long run with relation to costs. Discuss how short run and long run vary in a firm.
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.
Discuss the different types of costs like fixed, variable, or both