Following are the two main differences in the economic concept of short run and Long Run:
- Short run is a decision making time frame in which one factor of production is fixed. On the other hand, Long run is a decision making time frame in which the quantities of all inputs can be varied.
- Costs that are fixed in the short run have no effect on the firm's decisions. The costs of land labor raw materials and capital goods is assumed to be varied.
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economics.about.com
- Short run is a decision making time frame in which one factor of production is fixed. On the other hand, Long run is a decision making time frame in which the quantities of all inputs can be varied.
- Costs that are fixed in the short run have no effect on the firm's decisions. The costs of land labor raw materials and capital goods is assumed to be varied.
Learn more about this concept at the link below:
economics.about.com
