What is the distinction between the economic short run and the economic long run

Question

What is the distinction between the economic short run and the economic long run? In the short run the firm can vary all inputs but in the long run at least one input is fixed In the short run the firm incurs only variable costs, but in the long run the firm incurs fixed and variable costs In the short run the firm at least one input is fixed but in the long run the firm can vary all Inputs. In the short run the firm incurs no opportunity costs but in the long run the firm incurs some opportunity costs

Explanation / Answer

C. In the short run the firm at least one input is fixed but in the long run the firm can vary all inputs.

Short run is a period of time in which firm is not able to change all its factors of production. Firm can change either one factor or few factors not all to change its output level. Fixed factors are those factors which cannot be changed in the short spann of time like building, machinery, furniture, etc. Variable factors are factors of production which can be changed as per the requirement of production like labor units. But in the long run, all factors are variable.

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