SHORT RUN

PRODUCTION
MICROECONOMICS

VS. LONG RUN

PRODUCTION.
Shaine Cariz M. Salamat
 FIXED FACTOR
- At least one fixed factor input
- Factors of production are fixed, except for labor, which
remains variable.
- firms are only able to influence prices through adjustments
SHORT RUN PRODUCTION

made to production levels.

The Law of Diminishing Returns set in the short run

Capital - Fixed Factor
Labor - Variable
Factor - Homogeneous
Level of technology - Fixed
 The long-run is a period of time in which
all factors of production and costs are
variable.

LONG RUN firms are able to adjust all costs,

PRODUCTION. changeable.

Labor and Supplies