LONG RUN COST SHORT

RUN COST
L. SAI PRASHID
JEEVEN
LONG RUN COST
• IN the long run,all factors of production are variable,meaning
companies can object all inputes.thay are no fixed costs in the long
run, as firms can change the scale of there operations to meet the
level of output desired. The long run allows for the analysis of
aconomies and diseconomies of scale
LONG RUN KEY POITS
• ECONOMIES OF SCALE : occur when increasing the scale of
production leads to a lower cost per unit. This can be due to factors
like improved efficiency, better uses of technology, or bulk purchasing
of inputs
Diseconomies of scale: occur when increasing the scale of
production leads to a higher cost