Final answer:
In economics, the short run and the long run refer to different time periods related to a firm's production decisions. In the short run, firms are unable to change their fixed inputs, while in the long run, they have the flexibility to adjust all factors of production.
Step-by-step explanation:
In economics, the short run and the long run refer to different time periods related to a firm's production decisions. In the short run, firms are unable to change their fixed inputs, which are resources that cannot be easily altered, such as buildings or machinery.
However, they can adjust their variable inputs, such as labor and raw materials. In the long run, firms have the flexibility to adjust all factors of production, including fixed inputs.