The upcoming discussion will update you about the difference between short run and long run in theory of production. In the theory of production, we are concerned with how inputs are converted into output. We are also interested in knowing how total product responds to an increasing application of a variable factor, keeping other factors fixed. The key concept here [...]
In this article we will discuss about the relation between Short-Run and Long-Run Costs. There is a close relation between short-run and long-run costs. To discover the relation we have to note at the outset that, as a general rule, a business firm plan in the long run and produces in the short run. In other words, the long run [...]
In this article we will discuss about Cost in Short Run and Long Run. Cost in Short Run: It may be noted at the outset that, in cost accounting, we adopt functional classification of cost. But in economics we adopt a different type of classification, viz., behavioural classification-cost behaviour is related to output changes. In the short run the levels [...]