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Costs In The Long-Run
Just as some costs are fixed and others are variable so are the
inputs, or resources, or, factors of production used by the firm and this
has an impact on its short and long run operations. These time periods
(the short and the long run) do not refer to specific, chronological time
of hours, days, weeks, months or years. Rather they are periods of
adjustments.
The Long-Run is that time period in which all factors of production
are variable i.e. the firm can increase its productive capacity by changing
the scale of its operation. For example, if a printing press can only
deal with 1,000 sheets per minute then it do ....
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