2.

2 Consider Boeing (a producer of jet aircraft), General Mills (a producer of breakfast

cereals), and Wacky Jack’s (which claims to be the largest U.S. provider of singing
telegrams). For which of these firms is the short run the longest period of time? For which is
the long run the shortest? Explain.
(Pertimbangkan Boeing (produsen pesawat jet), Jenderal Mills (produsen sereal sarapan), dan
Wacky Jack (yang mengklaim sebagai penyedia AS terbesar menyanyi telegram). Yang mana
dari perusahaan ini adalah jangka pendek periode waktu terlama? Untuk yang mana jangka
panjang yang terpendek? Jelaskan.)
Answer :
1. Short run is defined as the period of time where only variable factors can be changed (i.e.,
labor). Long run refers as the period of time where all factors, including fixed capital (i.e.,
land) can be changed. Therefore, based on the firms Short run would be longest for
General Mills Factories and Boeing because the process of converting the input to the
output of the product takes extended periods of time. If any short run variable factors are
changed, the output result will take much more time to change. Both in light of the fact
that they are not the biggest maker (as not expressed being referred to) of what they
created so they can't impact the cost through changes made to generation levels (as Short
run implies when firms can impact costs through modifications made to generation levels).
On the other hand, the company with longest run most brief is for Wacky Jack becuse they
are the biggest maker of singing wires and hence they can control the components of
generation and costs (make them variable). Over the long haul, firms can change all
expenses. Wacky Jack’s has the ability to change any and all inputs in the shortest time-
frame among all of the given companies.