# Long Run: What It Is, How It Works, and Example.

. What is the Long Run?

The long run is a period of time in which all factors of production and costs are variable. This contrasts with the short run, in which at least one factor of production is fixed. The long run is also known as the "planning period." What is long run and short run in macroeconomics? In macroeconomics, the long run is a period of time in which all factors of production and prices are variable. The short run is a period of time in which at least one factor of production is fixed.

What is short run and long run example? In microeconomics, the short run is defined as the period of time in which at least one production input is fixed while others are variable. The long run, on the other hand, is defined as the period of time in which all production inputs are variable.

A common example of the short run is a factory that cannot increase its output without hiring additional workers. In the long run, the factory can build a new factory or find a new source of workers.

Other examples of the short run include:

-A firm that has a monopoly on a raw material

-A firm that has a patent on a new technology

-A firm that faces high fixed costs of production

### How do you find the long run cost function?

In microeconomics, the long run cost function is the total cost of production when all inputs are variable. This contrasts with the short run cost function, which is the total cost of production when at least one input is fixed. To find the long run cost function, we must first determine the input levels that will minimize cost. This can be done using calculus, by taking the first derivative of the cost function and setting it equal to zero. This will give us the minimum cost at each level of output. We can then plug these values back into the cost function to get the long run cost function.

### What are the benefits of long run economic growth?

The benefits of long run economic growth are many and varied. In the long run, economies tend to grow at a faster pace than in the short run. This means that there are more opportunities for businesses to expand and for people to find new jobs. Economic growth also leads to higher incomes and better living standards for people in the economy. In the long run, economic growth also helps to reduce poverty and inequality.

#### What is short run and long run production function?

In microeconomics, production functions are used to describe the relationship between inputs and outputs in the production process. A production function can be classified as either a short-run production function or a long-run production function depending on whether it includes all inputs in the production process or only some of them.

The short-run production function includes only those inputs that can be varied in the short run, while the long-run production function includes all inputs. In the long run, all inputs can be varied and so the long-run production function is a more general description of the production process than the short-run production function.

The most common form of the production function is the Cobb-Douglas production function, which takes the following form:

Q = F(K,L) = AK^αL^{1-α}

where Q is output, K is capital, L is labor, and A is a constant. The parameter α is the elasticity of output with respect to capital, and 1-α is the elasticity of output with respect to labor.

The production function can also be expressed in per capita terms, which is often more convenient when comparing different production processes:

q = f(k,l) = ak^αl^{1-α}

where q is output per capita, k is capital per capita, and l is labor per capita.

The Cobb-Douglas production function is a special case of the more general class of production functions known as CES production functions. CES production functions take the following form:

Q = F(K,L) = A(K^ρ + L^ρ)^(1/ρ)

where Q is output, K is capital, L is labor, A is a constant, and ρ is a parameter known as the elasticity of substitution.

The CES production function can also be expressed in per capita