what is short-run and long-run?

Question

Define elastic the touch of profit that are possible to earn in the short-run. Explain the long-run equilibrium position of the firm.

Answer 1

I'm not going to do your homework for you, but remember that in the short run prices are fixed and output is flexible --- in the long run prices are flexible and output is fixed.

Answer 2

The short run and long run are the time frame involved in business decisions. For the short run, adjustments can be made to improve efficiencies and for a while losses can happen. In the long run, profits will equal zero as more firms compete in the markets. LTR = 0.

Answer 3

In economics, the words “short run” and “long-term” are relative. interior the quick run, there are fixed expenses that don't exchange. interior the long-term, all inputs are variable, and firms and traders can pass money around to the place they are going to be the finest. staring on the industry and the capital standards, the long-term could desire to be various years, or could desire to be as low as some weeks. oftentimes, one twelve months is seen the bounds of what could desire to be seen the quick run, yet there are situations wherein it may desire to stretch on longer. interior the quick run, there are any style of motives that a company could desire to function at a loss. that's a technique to win industry proportion, or force different opposition out of organisation, or it may desire to be using general financial circumstances. For some era, a business organisation could desire to additionally be producing money on an analogous time as working at an accounting loss, in the event that they arrive to a determination to no longer make investments back into the organisation. without some money influx, even with the undeniable fact that, they gained't have the potential to replace capital kit and make investments had to proceed to be a doable concern interior the long-term. interior the long-term, a company could desire to generate helpful money flows whether that's to proceed to exist. If it throws off much less money than consumes, it is going to run interior the direction of the preliminary money invested. without some promise of destiny profitability, no new traders will step in to fund it. at last, all firms could desire to placed money into their fixed capital and kit or possibility turning out to be no longer able to function.

Answer 4

short runs are like sprints. long runs ar like longer than short runs, but not as long as a marathon, a marathon has many short runs and just a few like long runs. long runs are in between short runs and like only one- eighth as long as a marathon. it takes like eight short runs to make a long run and like sixty-four short runs to make like a marathon. they are like in this order:
short run
eight short runs = 1 long run
eight long runs = 1 marathon
64 short runs = 1 marathon
8 marathons = 1 road course
8 road courses= 1 race
race is the highest that you can go. after that you have to start all over again, such as 8 short runs = 1 long run, etc, etc, ....

Answer 5

In the short run not all factors of production can be changed.
In the long run ALL factors of production can be changed (usually this means building another factory, etc.).

Answer 6

short run-- one kilometer
long run----one mile