Difference between short run and long run production function is as follows:

This distinction is important to a manager because a manager must know when he can change the factors of production or when he can adopt changes and expand its business activities. By understanding the difference, a manager is able to identify the phase in which he can invest more money in the organization. For example, in the short run, changes in capital assets of the organization are not possible. Therefore, a manager must understand the difference in the long run and short-run production function.