Asked by josely miranda on May 19, 2024
Verified
Describe the difference between the short run and the long run.
Short Run
A period in economics during which at least one factor of production is fixed, affecting production capabilities.
Long Run
A period in which all factors of production and costs are variable, allowing for full adjustment to changes in economic conditions.
- Comprehend the difference between the short run and the long run in production.
Verified Answer
AS
Angela SharmaMay 19, 2024
Final Answer :
In the short run, the firm considers at least one factor of production to be fixed (factory size, for example). In the long run, the firm considers all factors of production to be variable.
Learning Objectives
- Comprehend the difference between the short run and the long run in production.