Difference between short term and long term in economics
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8
Heya....
@@ Short run...
** It is the production period in which output is increased only by increase in variable factors....
** Ratio between fixed and variable factor is changeable because of Fixation of fixed factor...
** It is not a sufficient period to change in scale of production...
@@ Long run....
** In this output is increased by changing both factors as fixed as well as variable...
** The factor ratio tends to be constant....
** This is a sufficient time period to change in scale of output...
@@ Short run...
** It is the production period in which output is increased only by increase in variable factors....
** Ratio between fixed and variable factor is changeable because of Fixation of fixed factor...
** It is not a sufficient period to change in scale of production...
@@ Long run....
** In this output is increased by changing both factors as fixed as well as variable...
** The factor ratio tends to be constant....
** This is a sufficient time period to change in scale of output...
Nimai11:
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HEY MATE ⭐⭐⭐
HERE IS THE ANSWER ✌
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✔SHORT RUN:
The short run production function is one in which at least is one factor of production is thought to be fixed in supply, i.e. it cannot be increased or decreased, and the rest of the factors are variable in nature.
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✔LONG RUN:
Long run production function refers to that time period in which all the inputs of the firm are variable. It can operate at various activity levels because the firm can change and adjust all the factors of production and level of output produced according to the business environment. So, the firm has the flexibility of switching between two scales.
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HOPE IT HELPS ☺☺☺
HERE IS THE ANSWER ✌
_________________
⬇⬇⬇
✔SHORT RUN:
The short run production function is one in which at least is one factor of production is thought to be fixed in supply, i.e. it cannot be increased or decreased, and the rest of the factors are variable in nature.
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✔LONG RUN:
Long run production function refers to that time period in which all the inputs of the firm are variable. It can operate at various activity levels because the firm can change and adjust all the factors of production and level of output produced according to the business environment. So, the firm has the flexibility of switching between two scales.
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