464 Views

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.

Related Questions

Amity University-Noida B.Tech...
Apply
Among top 100 Universities Globally in the Times Higher Education (THE) Interdisciplinary Science Rankings 2026
Indus University M.Tech Admis...
Apply
Highest CTC 26 LPA | Top Recruiters: Accenture, TCS, Tech Mahindra, Capgemini, Microsoft
New Horizon College BBA Admis...
Apply
UG Admissions 2026 open| NAAC ‘A’ grade | Merit-based Scholarships available.
MAHE, Manipal - B.Tech Admiss...
Apply
Final Application Deadline: 23rd March | NAAC A++ Accredited | Accorded institution of Eminence by Govt. of India | NIRF Rank #3
Greater Noida Institute of Te...
Apply
NAAC A+ Accredited | Highest CTC 70 LPA | Average CTC 6.5 LPA | 400+ Recruiters
Guru Nanak College - B.Tech 2026
Apply
3000+ Successful Placements | 100+ Leading Recruiters
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