A question probing the difference between the short and long run might ask what the basic difference is. We learned that in the long run all costs are variable. What about the short run? '''In the short run, some costs of a firm are fixed and unchangeable'''. For example, the night before the March for Life bus trip to D.C., decisions about the buses must be made in the short run. It is too late then to change the number of buses. The cost of the buses is fixed, not variable, in the short run. | A question probing the difference between the short and long run might ask what the basic difference is. We learned that in the long run all costs are variable. What about the short run? '''In the short run, some costs of a firm are fixed and unchangeable'''. For example, the night before the March for Life bus trip to D.C., decisions about the buses must be made in the short run. It is too late then to change the number of buses. The cost of the buses is fixed, not variable, in the short run. |