Hello,
I do not understand how to get the long run and short run for the following problem. The main problem is how I know what it looks like, 1/x or 1/x^2 or -
the problem:
x^2/x-1
thanks
When $\displaystyle |x|$ is small $\displaystyle x-1$ behaves like $\displaystyle -1$, and so $\displaystyle x^2/(x-1)$ behaves like $\displaystyle -x^2$.
When $\displaystyle |x|$ is large $\displaystyle x-1$ behaves like $\displaystyle x$, so $\displaystyle x^2/(x-1)$ behaves like $\displaystyle x$.
CB