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Advanced Microeconomics Theory(Costs)
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In the theory of firm the distinction between short run and long run production costs is not necessarily based on the length of time. It is rather based on the degree of the variability of inputs.
These two concepts also based on their flexibility and rigidity to the changing nature of the firm’s scale of operation.
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Advanced Microeconomics Theory(Costs)
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In the theory of firm the distinction between short run and long run production costs is not necessarily based on the length of time. It is rather based on the degree of the variability of inputs.
These two concepts also based on their flexibility and rigidity to the changing nature of the firm’s scale of operation.
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