Page 9 - FINAL CFA SLIDES DECEMBER 2018 DAY 5
P. 9
Session Unit 4:
14. Topics in Demand & Supply Analysis, p. 1
LOS 14.e: Determine and interpret breakeven and shutdown points of production, p. 11
Short run (SR) = time period over which some factors of production are fixed e.g. PPE!
Long-run (LR) = time period over which firm can vary its factors of production -let its leases
expire and sell its equipment, thereby avoiding costs that are fixed in the short run.
Perfect vs Imperfect Competition, p 23 (figure 2/3) and p.28!
