What is the difference between the short run and long run?

The short run and long run is not determined by a set period of time, but rather by which factors of production are fixed. In the short run, at least one factor of output is fixed. Whereas in the long run, no factors of production are fixed. In other words, the long run is when expansion is possible for the firm.

ZC

Related Economics GCSE answers

All answers ▸

What affect does increasing demand have on price levels and consumer surplus?


What are the factors affecting the price elasticity of demand?


What's the difference between movements along and shifts in the demand curve?


What is a general equilibrium in a market?