Schwindt Econ290 12 11 2003

Long Run and Short Run Cost
Long Run and Short Run Cost
Long Run and Short Run Cost 1. What are long run and short run costs? Why is it important to differentiate between these 2 concepts? In this section we will be defining long run and short run costs and their effects on businesses. This will lead us to a better understanding of the reasoning behind the differentiating between the two concepts etc. Short run cost: cost is the amount that the firm pays to buy inputs for production. Costs of production may be divided into fixed costs and variable co