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explain the concept of short run and long run as associated with a firm.


Arsh Bawa 18th Jan, 2020
Answer (1)
Shudhanshu Gupta Student Expert 22nd Jan, 2020
Hello.
Short run and long run are the theoretical concept of economics which can be studied with a curve and simple explainatory definition of short run and long run are given below:
  • SHORT RUN:

In this one factor of production (i.e, Capital)is fixed this is a time period which is fewer than four-six months.
  • LONG RUN:
In this all factors of production of a firm are variable (e.g. a firm can build a bigger factory) this is a time period which is greater than four-six months/one year.

I hope you understood.
Best of luck.

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