![]() ![]() Therefore in the short run, we can get diminishing marginal returns, and marginal costs may start to increase quickly.This means that if a firm wants to increase output, it could employ more workers, but not increase capital in the short run (it takes time to expand.) In the short run one factor of production is fixed, e.g.In the very short run, the firm can only do things like perhaps changing price, giving special offers or trying to manage exceptional demand by queing system. ![]() At a particular point in time a business may not be able to ask employers to work at short notice or they may not be able to order more stock.More detailed explanation Very short run (immediate run) Very long run – Where all factors of production are variable, and additional factors outside the control of the firm can change, e.g.a firm can build a bigger factory) A time period of greater than four-six months/one year Long run – where all factors of production of a firm are variable (e.g.This is a time period of fewer than four-six months. Short run – where one factor of production (e.g.(e.g on one particular day, a firm cannot employ more workers or buy more products to sell) Very short run – where all factors of production are fixed.The short run, long run and very long run are different time periods in economics. ![]()
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