Scenario 5.1
The demand for noodles is given by the following equation: Q = 20 - 4P + 0.2I - 2P x . Assume that P = $8, I = 200, and P x = $10.
-In the long run, the quantity of capital available to a firm is fixed.

Question

Quizplus · Accepted Answer

In the long run, the quantity of capital is not fixed. Firms can adjust their capital equipment by buying new capital or selling old one, and thus, change the level of production in the long run.

Scenario 5.1 The Demand for Noodles Is Given by the Following Equation