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What Is Short And Long Run Concept In Economics?

April 26, 2017concept Economics run

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What Is Short And Long Run Concept In Economics?

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Short run and long run concept in economics have been developed to compare and analyse the cost and returns for the production of a certain business concern. It is normally observed that the management has to analyse the short run relationship of cost and returns for formulation of the strategies for long term.it is a time-frame for the firms self assessment. Short run includes a time range of 1 to 3 years (differs in industries), and long run has a range of 3 to 10 yrs. Yet another time-frame is taken in economics, which is very short term, and includes 6 months to 1 yr.