Unformatted text preview: wanting to stay put until their children finish high school. Thus, most of the firm’s workers may accept a pay cut in the short run, but once their fixed commitments are gone, the long-run response may be very different. For some firms or individuals the short run may be only a week or a month, while for others the short run may be years. The exact length of the short run depends on the length of the fixed commitments people face in a given situation.” “The long run is the time period in which anything can be changed, or in which individuals and firms are fully able to respond to economic incentives and take advantage of economic opportunities. The long run has no specific time frame; it is simply the time period that is long enough to allow full response to changing incentives. 48...
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- Fall '10
- Economics, three-year, three year, Mabry, Ulbrich