Long Run And Short Run
In microeconomics, the long run is the conceptual time period in which there are no fixed factors of production as to changing the output level by changing the capital stock or by entering or leaving an industry. The long run contrasts with the short run, in which some factors are variable and others are fixed, constraining entry or exit from an industry. In macroeconomics, the long run is the period when the general price level, contractual wage rates, and expectations adjust fully to the state of the economy, in contrast to the short run when these variables may not fully adjust.
Read more about Long Run And Short Run: Long Run, Short Run, Transition From Short Run To Long Run, The Law of Diminishing Marginal Returns, Macroeconomic Usages
Famous quotes containing the words long run, long, run and/or short:
“If it is asserted that civilization is a real advance in the condition of man,—and I think that it is, though only the wise improve their advantages,—it must be shown that it has produced better dwellings without making them more costly; and the cost of a thing is the amount of what I will call life which is required to be exchanged for it, immediately or in the long run.”
—Henry David Thoreau (1817–1862)
“Wherefore is light given to him that is in misery, and life unto
the bitter in soul;
Which long for death,”
—Bible: Hebrew Job (l. III, 20–21)
“If you keep your feathers well oiled the water of criticism will run off as from a duck’s back.”
—Ellen Henrietta Swallow Richards (1842–1911)
“It is indeed very possible, that the Persons we laugh at may in the main of their Characters be much wiser Men than our selves; but if they would have us laugh at them, they must fall short of us in those Respects which stir up this Passion.”
—Joseph Addison (1672–1719)