{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Long Run - Long run of a firm can be defined as a Period...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Long Run We have assumed that only labor and raw materials are variable factors. All other factors like machines, tools, manager, factory building, etc. are fixed factors. When a firm continues to produce for a sufficiently long number of years some or all of its fixed factors can be replaced. In the long run the distinction between fixed and variable factors becomes less important.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Long run of a firm can be defined as, a Period sufficiently long during which at least one (or more) of the fixed factors become variable and can be replaced. Long run is an analytical concept. These is no fixed limit on the number of years to distinguish between short run and long run. For each variety of fixed factors, its long run depends upon its life span....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online