The key difference between supply in the short run and supply in the long run is the assumption that firms:

Question

Quizplus · Accepted Answer

The key difference lies in the ability of firms to enter and exit the market, which is more feasible in the long run due to the adjustment of factors of production and market conditions. In the short run, these adjustments are not as easily made due to existing contracts, capital investment, and other immediate constraints.

The Key Difference Between Supply in the Short Run and Supply