Distinguished between short run cost and long run cost
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Differences. The main difference between long run and short run costs is that there are no fixed factors in the long run; there are both fixed and variable factors in the short run. ... In the short run these variables do not always adjust due to the condensed time period.
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Differences. The main difference between long run and short run costs is that there are no fixed factors in the long run; there are both fixed and variable factors in the short run. In the long run the general price level, contractual wages, and expectations adjust fully to the state of the economy.
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