116 Views

explain the concept of short run and long run as assocaited bu firm about in 250words


Recommended : Get important details about Bharathiar University. Download Brochure
Amit Kumar 21st Jan, 2020
Answer (1)
Charvi Nayyar 1st Mar, 2020

Hello aspirant

In economics the long run is a theoretical concept in which all markets are in equilibrium, and all prices and quantities have fully adjusted and are in equilibrium. The long run contrasts with the short run, in which there are some constraints and markets are not fully in equilibrium.

In a long run, firms change production levels in response to (expected) economic profits or losses, and the land (economics) , labour  , capital goods and entrepreneurship vary to reach the minimum level of long-run average cost.

In the short run, a profit-maximizing firm will:

  • increase production if marginal cost is less than marginal revenue
  • decrease production if marginal cost  is greater than marginal revenue
  • continue producing if average variable cost  is less than price per unit, even if average total cost  is greater than price

Hope this helps

Compare Colleges

College Comparison based on Courses, Placement, Rank, Fee

Compare Now

Know More About

Related Questions

Pearl Academy Media Programs ...
Apply
100% Placement | 500+ Recruiters | Placement support for alumni for 5 Years
UPES Dehradun -Media and Mass...
Apply
Ranked #46 Among Universities in India by NIRF | 2570+ Students Placed | 96.55% Placement, 700+ Recruiters
Great Lakes PGPM & PGDM 2025
Apply
Admissions Open | Globally Recognized by AACSB (US) & AMBA (UK) | 17.3 LPA Avg. CTC for PGPM 2024 | Application Deadline: 1st Dec 2024
ICFAI Business School-IBSAT 2024
Apply
9 IBS Campuses | Scholarships Worth Rs 10 CR
UPES B.Tech Admissions 2025
Apply
Ranked #42 among Engineering colleges in India by NIRF | Highest CTC 50 LPA , 100% Placements
Pearl Academy B.Des Admission...
Apply
No. 1 Design & Fashion Institute by ASSOCHAM, India Today, Outlook and The Week rankings
View All Application Forms

Download the Careers360 App on your Android phone

Regular exam updates, QnA, Predictors, College Applications & E-books now on your Mobile

150M+ Students
30,000+ Colleges
500+ Exams
1500+ E-books