I want some assistance on the below detailed, not much required approx 350 to 400 words....
A firm finds there is a sudden increase in the demand for its product. In the short run, it must operate longer hours and pay higher overtime wage rates. In the long-run, however, the firm can install more machines and operate them for various periods of time. Which do you think will be lower, the short-run or long-run average cost of the increased output? How is your answer affected by the fact that the long-run average cost included the cost of the new machines the firm buys, while the short-run average cost includes no machine purchases? Explain your answer.