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Economics (AS & A Level) · Feb / March 2025 · Paper 12 · Question 2

9708Economic methodology

To increase production, a firm in industry X needs to install capital equipment, while a firm in industry Y needs to research and introduce a new technology. What time periods are illustrated by these cases?

  1. Aindustry X: short run; industry Y: long run
  2. Bindustry X: long run; industry Y: long run
  3. Cindustry X: long run; industry Y: very long run
  4. Dindustry X: very long run; industry Y: very long run

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Correct answer: C. industry X: long run; industry Y: very long run

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