A difference between the short run and the long run is that a firm in the short run faces an unconstrained cost minimization problem, whereas the firm is constrained in the long run.

Question

Quizplus · Accepted Answer

In the short run, a firm faces fixed factors of production and can only adjust some inputs, making it constrained in its cost minimization efforts. In the long run, all factors of production are variable, allowing a firm more flexibility to adjust its production to minimize costs.

A Difference Between the Short Run and the Long Run