Short Run, Long Run and Product Measures
Short Run, Long Run and Product Measures
The short run is a period in which at least one factor of production is fixed. The long run is a period in which all factors of production are variable, so the firm can change the scale of everything it uses.
Step-by-step lessons covering AQA A Level Economics 1.4.3 The law of diminishing returns and returns to scale (A-level only) for A Level Economics. Each lesson works through exam-style questions in Paper 1, Paper 2 and Paper 3 format. Start with the core supply-and-demand models before moving on to the more evaluation-heavy macroeconomic policy topics.