Glossary · Micro · Production and costs

Short run vs long run

The short run is the period in which at least one input, usually the factory or its machines, cannot be changed. In the long run every input is adjustable and firms can enter or leave the industry. The line between them is about flexibility, not a number of months.

Taught in: Short Run vs Long Run

Related terms

Fixed cost (FC)Long-run average cost (LRAC)Long-run competitive equilibrium

More from production and costs

Average fixed cost (AFC)Average product of labor (APL)Average total cost (ATC)Average variable cost (AVC)Cobb-Douglas production functionEconomies and diseconomies of scaleIsoquant

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