Khan Academy: Long Run Production Costs

Practice what you have learned about short-run production costs in this four-question exercise.

Practice what you have learned about the difference between marginal cost, average variable cost, and fixed costs in this four-question exercise.

A constant cost industry is an industry where each firm's costs aren't impacted by the entry or exit of new firms. Learn about the difference between the short run market supply curve and the long run market supply curve for perfectly...

In some industries, the number of firms in the market has an impact on the costs that firms face. For example, when firms have to compete with each other over resources, firms' costs increase as more firms enter the market. But in other...

A demand shock has a short-run effect on an output and unemployment, but in the long run only the price level will be impacted. If there is an increase in aggregate demand, the price level will go up. Once wages have adjusted to that...

In this video we explore the long run average total cost curve and how average costs vary when all inputs can be adjusted.

We claim that aggregate supply is not responsive to changes in the price level in the long run, leading to a vertical long-run aggregate supply (LRAS) curve, but why? In this video we explore why aggregate supply may not be influenced by...

Practice what you've learned about the long-run adjustment of output, employment, and prices to changes in aggregate demand and short-run aggregate supply in this exercise.

Practice what you've learned about why long-run aggregate supply curve (LRAS) is vertical, and the relationship between LRAS and the stock of resources, technology, and the natural rate of unemployment in this exercise.

A firm in a perfectly competitive market might be able to earn economic profit in the short run, but not in the long run. Learn about the process that brings a firm to normal economic profits in this video.