What is the meaning of short-run?
Answers
Answer:
taken or considered on a short timescale; short-term.
example:
"periods of often violent short-run price volatility"
Answer:
ECONOMICS MICROECONOMICS
Short Run
By WILL KENTON
Updated Aug 19, 2019
What Is the Short Run?
The short run is a concept that states that, within a certain period in the future, at least one input is fixed while others are variable. In economics, it expresses the idea that an economy behaves differently depending on the length of time it has to react to certain stimuli. The short run does not refer to a specific duration of time but rather is unique to the firm, industry or economic variable being studied.
A key principle guiding the concept of the short run and the long run is that in the short run, firms face both variable and fixed costs, which means that output, wages, and prices do not have full freedom to reach a new equilibrium. Equilibrium refers to a point in which opposing forces are balanced.