Question

Difference between short run and long run in economics

Answer 1

Answer:

Short Run Production function:

• It is production function which exist in short period.
• Short run is maximum 1 year.
• In short rum production function labour is variable and land, capital and organisation remain fixed.
• It study law of variable proportion.

Long run production function:

• It is production function which exist after 5 years.
• Long run is maximum 5 years.
• In long run all the factors of production are variable.
• It study law of return to scale.

Answer 2

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