0
$\begingroup$

Shouldn’t there also be a concept of short vs. long-run equilibrium in microeconomics? After all, short-run equilibrium describes the state of the economy when wages and prices are still adjusting and when worker misperceptions are affecting quantity-supplied of labor; and long-run equilibrium is the state of the economy when worker misperceptions have been corrected, and wages and prices have adjusted to their final levels.

Doesn’t this happen in microeconomic situations? If not, why not?

Improve this question
$\endgroup$
3
  • $\begingroup$ Micro does not have misperceptions, unless you count informational asymmetry. But every micro textbook I have seen so far has dealt with both long and short-run equilibria with respect to firms and the supply curve, so I am not sure what you are asking. $\endgroup$
    – Giskard
    Oct 15, 2017 at 14:23
  • 1
    $\begingroup$ Short-run and long-run equilibria have featured in microeconomics for over a century: see Marshall's Principles of Economics (1890) (econlib.org/library/Marshall/marP32.html#Bk.V,Ch.V). $\endgroup$
    – Adam Bailey
    Oct 15, 2017 at 15:06
  • $\begingroup$ @AdamBailey If posted as an answer I would vote for your comment (again). $\endgroup$
    – Giskard
    Oct 15, 2017 at 15:16

1 Answer 1

Reset to default
1
$\begingroup$

The concepts of short-run and long-run equilibria certainly feature in microeconomics. Indeed, they have done so for over a century: see Marshall's Principles of Economics (1890).

Improve this answer
$\endgroup$

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service and acknowledge that you have read and understand our privacy policy and code of conduct.

Not the answer you're looking for? Browse other questions tagged or ask your own question.