what is a difference btween long run and short run
Economics - Financial Markets
Stacey Warren - Expert brainly.com
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in terms of cost
Generally cost have varied effects in long run and short run. For example , in short run ( limited time period , say few months-few years ) capital cannot be increased by a firm , and the labor operate within that limited capital. It may lead to diminishing marginal returns for the firm. However in long run , that firm does not have capacity constraint , and may increase the capital according to the labor. Talking about long run , we deal with the future , relaxing the constraints , but in short run i.e., limited time frame , the firm is bound with many restrictions.
Well according to Keynes and I firmly agree with him....
"The long run is a misleading guide to current affairs. In the long run we are all dead. "
John Maynard Keynes, A Tract on Monetary Reform (1923)