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Differentiate between the short run and Long run?​

User Cooncesean
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Answer:

Short-run is a time limit during which at least one input can be fixed and other input quantities can be verified.

The long run is a time period in which all the inputs can be verified in quantities.

Step-by-step explanation:

  • Both the fixed and variable costs occur in the short term.
  • There are no fixed costs in the long term.
  • The combination of the output of a company results in the desired amount of the goods at the lowest possible cost is sustained by efficient long-term costs.
  • The output changes variable costs. For instance, the employee's salaries and raw material costs are variable costs.

  • Based on variable costs and the production rate, the short-run costs are increasing or falling. If a company manages its short-term costs well over time, the desired long-term costs and goals will more likely be achieved.
User Bolnad
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