explain the difference between the short and long run

Question

Question

Answer 1

Answer #1

Solution:

Short run	Long run
It is a period of time in which some factors of production are variable and some are fixed.	It is a period of time in which all the factors of production.
Return to factor takes place.	Return to scale takes place.
For example: When producer can increases its output by changing the quantity of labor employed while the amount of capital remain same. This condition arises in short run.	For example: When producer can increases its output by changing the quantity of labor as well as capital. This condition arises in long run run.

Answer 2

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