Difference between revisions of "Long Run"

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(Corrected claim about "the distant future" to proper economic definition of the long run (rewrote article))
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The '''long run''' is a term in [[economics]] for the distant future.  Long run costs for a seller include building factories, buying new equipment, and hiring new employees.
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In [[economics]], the '''long run''' refers to the timeframe in which all [[factors of production]] are variable. It is most frequently compared with the [[short run]], in which at least one factor of production is fixed, or the market timeframe, in which all factors are fixed.  
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Economist [[John Maynard Keynes]] famously quipped, "Long run is a misleading guide to current affairs. In the long run we are all dead."[http://www.bartleby.com/66/8/32508.html]
 
  
 
[[category:economics]]
 
[[category:economics]]

Revision as of 21:44, May 26, 2009

In economics, the long run refers to the timeframe in which all factors of production are variable. It is most frequently compared with the short run, in which at least one factor of production is fixed, or the market timeframe, in which all factors are fixed.