In the economics for a company what is the difference between short run and long runIn the long run all factors of production can be changed, in the short run some factors of production are fixedIn the short run all factors of production can be changed, in the long run some factors of production are fixedIn the short run profits are lessIn the long run profits are less

Answered: In the economics for a company what is…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In the economics for a company what is the difference between short run and long run

In the long run all factors of production can be changed, in the short run some factors of production are fixed
In the short run all factors of production can be changed, in the long run some factors of production are fixed
In the short run profits are less
In the long run profits are less

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In economics, factors of production can be of two types which are fixed and variable. In the short run or short time, the company is not able to change some of its factor of production according to its needs and production such as land, factory, and machines, so these factors of productions are fixed and the factors such as labor are variable as they can easily change with need and the level of production. But in the long run or long time, the company able to change all of its factors of production, so all factors are variable.

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