The short run is a period of time where while the long run is a period of time where

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02-08-2022
Social Studies

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The short run is a period of time where while the long run is a period of time where

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anshumanaryan799 anshumanaryan799 · Answer 1 · 2022-08-09T14:29:50-04:00

The short run is a period of time where at least one input is fixed while the long run is a period of time where inputs are variable.

Short-term is a concept that indicates that at least one input will be fixed and the others will vary within some future time period. Economics expresses the idea that the economy behaves differently depending on how long it needs to react to a particular stimulus. The short term does not refer to a specific time period, but rather is specific to the company, industry, or economic variable being studied.

A key principle guiding the concept of short and long term is that businesses face both variable and fixed costs in the short term. This means that output, wages, and prices are not completely free to reach new equilibria. Equilibrium refers to the point at which opposing forces are balanced.

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