Explain the difference between the short run and the long run in Economics

Business Dec 27, 2020

Explain the difference between the short run and the long run in Economics.

Expert Solution

In economics, different metrics are used to measure different variables in the economy. Short-run or short term refers to a concept in economics that argues that at least one production factor remains constant within a specific set period. On the other side, the long run refers to a concept in economics that argues that all production factors vary within a specific period.

The difference between the short run and long run in economics is that in the short run, at least one variable remains constants over the set period. On the other side, in the long run, all variables or factors used in production change within the set period.

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