Principles of Microeconomics / Unit 6 MIC 0528 short lesson, about 20 seconds
Production in the Long Run
Captions available
The idea
In the long run every input is variable, including the short run's fixed ones. The firm chooses its scale and its input mix, and there are no fixed costs.
In practice
When the lease ends the bakery can take a bigger oven.
Where people slip
The long run is a planning horizon, not a date; a firm lives in a short run while planning the long.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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