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MARGINAL REVENUE PRODUCT AND FACTOR DEMAND: A perfectly competitive firm's factor demand curve is that negatively-sloped portion of its marginal revenue product curve. A perfectly competitive firm maximizes profit by hiring the quantity of input that equates factor price and marginal revenue product. As such, the firm moves along its negatively-sloped marginal revenue product curve in response to changing factor prices.
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                           VERY SHORT RUN, MICROECONOMICS: A production period of time in which at all inputs in the production process are fixed, meaning the quantity of output itself is fixed. Also termed market period, the very short run exists if the period is so short that no additional production is possible. In other words, the good has been produced, all that remains is to sell it. This is one of four production time periods used in the study of microeconomics. The other three are short run, long run, and very long run. The very short run is a production time period that is so short that a firm is unable to change the quantities of any input, that is, there are no variable inputs. With no variable inputs, the firm is unable to change the quantity of output. The primary task of the firm is to sell the output that has been produced.The best examples of the very short run market period come from the farming industry. Giving the length of a growing season, once crops are harvested, output is fixed, inputs are fixed, and the only task at hand is to sell the output in the market. Farmers cannot change the quantity of inputs after harvest to produce any more output. Depending on the particular crop, the market period for farming can last anywhere from a few months to a year. The market periods for other types of production have shorter or longer time frames. A newspaper, such as the Shady Valley Daily Gazette Journal Record, for example, prints up a stack of papers early in the morning that it sells to the news-hungry public throughout the day. When the presses stop running and the papers hit the news-stands, the output quantity does not change. The market period for newspapers is something less than a day.
Recommended Citation:VERY SHORT RUN, MICROECONOMICS, AmosWEB Encyclonomic WEB*pedia, http://www.AmosWEB.com, AmosWEB LLC, 2000-2020. [Accessed: January 22, 2020].
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Today, you are likely to spend a great deal of time going from convenience store to convenience store trying to buy either a T-shirt commemorating the 2000 Olympics or a genuine fake plastic Tiffany lamp. Be on the lookout for malfunctioning pocket calculators.
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Cyrus McCormick not only invented the reaper for harvesting grain, he also invented the installment payment for selling his reaper.
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