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short run is a period which is not enough to change or alter the quantities of all of the factors of production. therefore, some factors of production are fixed in this period because you do not have enough time to change the quantities of them. so, in this period i.e., short run, some factors are fixed and others are variables. however, in long run, you have all the factors of production as variables as you have enough time to change them or replace them.
for ex:- if you have two factors of production, labor and machinery. it might be difficult for you to replace machinery in short run. however, difficulty might not arise in the case of labor. so in short run you would say that labor is variable and machinery is fixed. but in long run, both of your factors are variable because you have enough time to alter their quantities.
usually, in economics, we call a period of 1 year or less as short run. and a period of more than 1 year as long run. but this might not be suitable i every case. this time may vary from situation to situation.
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Distinguish between the concept of the short run and long run period theory of the firm?
Explain which of the following would be considered the long-run and short-run and why.
What is the relationship between long-run average cost curve and short-run average cost curve?
what is the relationship between long run average cost curve and short run average cost curve?
Explain the differences between short-run and Long-run as they are used in economics?
What is the inflationary gap?
its the difference between long run and short run aggregate supply
How is a long-run average cost curve different from a short-run average cost curve?
The long-run average cost curve is longer.
Distinguish between the concept of the short run and long run period theory of the firm?
Explain which of the following would be considered the long-run and short-run and why.
What is the relationship between long-run average cost curve and short-run average cost curve?
what is the relationship between long run average cost curve and short run average cost curve?
Explain the differences between short-run and Long-run as they are used in economics?
What is the main difference between long and short run?
Their length.
What is the inflationary gap?
its the difference between long run and short run aggregate supply
How is a long-run average cost curve different from a short-run average cost curve?
The long-run average cost curve is longer.
What kind of relationship you postulate between short-run and long run average cost curves when these are not U shaped?
The type of relationship that you postulate between short-run and long-run average cost curves that is not U shaped is the external limiting relationship.
What kind of relationship would you postulate between short-run and long-run average cost curves when these are not you-shaped as suggested by the modern theories?
what kind of relationship would you postulate between short run and long run average cost curves when these are not u shaped as suggested by the modern theories.
Is monetary policy neutral in both the short run and the long run?
Monetary policy is not neutral in the short-run but neutral in the long-run. Besides, fiscal policy is not neutral in both short-run and long-run.
Why are firms willing to accept economic losses in the short run but not the long run?
There are sunk cost in the short run but not in long run.
Which energy resources is cheaper in the short run In the long run?
Well in the short run, it is sunlight. In the long run, it is clean energy.:)
Which energy resource is cheaper in the short run In the long run?
Well in the short run, it is sunlight. In the long run, it is clean energy.:)
