Long run cost:
Long run is the period of time during which the quantities of all factors,
variable as well as fixed can be adjusted.
Thus in the long run output can be increased by
increasing the size of the existing plant or by building a new plant of a
greater productive capacity. In the long run no distinction between fixed and
variable cost, because nothing can be fixed for a long time.
In the long run, the staff would change the dimension
of the factory too may change and so on.
So, in the long run, all costs are long run cost. In
the long run, marginal and average cost curves.
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