Short-run and long-run are two different methods of production used throughout the manufacturing industry. Both are used for two different purposes, and you typically cannot have a production method that involves both of these two aspects. You can find out the major differences between short-run and long-run production by comparing your fixed and variable factors of production. Does this Spark an idea?
Instructions
1. Make a list of all the factors of production for a specific project you're working on. Common factors of production include the funds for a production, the location and equipment of the machinery that is being used in production, the workers who are operating the machinery and the total number of products that a particular line is creating.
2. Look on your list for any factors of production that are currently fixed. Fixed factors are things that cannot change based on the current specifics of the production line. For example, if you cannot increase or decrease the amount of workers you are employing on your production line, that is a fixed amount. This would be a short-run production as opposed to a long-run production.
3. Double-check your list to find out if all the factors of production are variable. If any factor of production on your list can be changed at any time including the equipment you're using (as well as the location), the number of workers, the money you are using and the total number of products you are outputting, you have a long-run production as opposed to a short-run production.
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