Answer to Question #226391 in Economics of Enterprise for Milisa

Question

How long is the short run in economics?

Answer 1

Short run is a period where one factor of production like capital or labor is fixed. This is a time period of fewer than four-six months. If a firm operates with two factors of production, in the short run one the factors must be variable and the other one Fixed. The opposite of short run is long run where all factors of production are variable.