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:The long run average costs would be less because you may have to pay more than the short run at first, but eventually the long run would pay for itself and then some. Because long run is more efficient. (Seth)
:The long run is cheaper than the short run because in the short run, the only thing that you can do to increase your output is to either increase your input or the number of employees that you have, whereas in the long, you can control many other costs, such as the efficiency of the factory, thereby affecting fixed costs .... (Dermot)
12. (Difficult, but try): Your firm seeks to produce a certain level of output in the most efficient way (the lowest cost). It should use its resources in which of the following ways:
