The concepts of the short run and long run are very important in the theory of production. For the firm requires time if it desires to have changes in the quantities of the inputs used by it. The firm cannot change the quantity of any input as soon as it decides to have that change. This is true for almost [...]
In this article we will discuss about the relation between the short-run and long-run cost curves. In the long run all factors are variable. Therefore, the producer can operate without facing the constraints of the fixed factors. The long-run cost (LAC) is not more than the short-run cost (SAC) because the unconstrained minimum average cost at any output cannot be [...]
In this article we will discuss about the quantity theory of money by Friedman. Friedman in his essay, "The Quantity Theory of Money—A Restatement" published in 1956 beautifully restated the old quantity theory of money. In his restatement he says that "money does matter". For a better understanding and appreciation of Friedman's modern quantity theory, it is necessary to state [...]