Answer to Question #316046 in Microeconomics for Welcome

Question

How is short run defined in production theory and does it differ from the long run?.

Answer 1

Short run refers to a production period in which at least one factor of production is considered to be fixed as other factors vary.

Yes it differs from the long run because in the long run this is a period of time in which all factors of production and costs are considered to be variable while in the short run at least one factor of production is fixed during this production period.