Question

Differentiate between the short run and Long run?​

Answer 1

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.

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.