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.

Zoe C. avatar
Answered by Zoe C. Economics tutor

2551 Views

See similar Economics GCSE tutors
Cookie Preferences