an example of a short run fixed factor of production is
capital equipment labor electricity postage for mailing
Capital would be the best example. As cost of capital would be fixed regardless the number of units produced.
The short run is a time period where at least one factor of production is in fixed supply. A business has chosen it’s scale of production and must stick with this in the short run We assume that the quantity of plant and machinery is fixed and that production can be altered by changing variable inputs such as labour, raw materials and energy. The time periods used differ from one industry to another; for example, the short-run in the electricity generation industry differs from local sandwich bars. If you are starting out in business with a new venture selling sandwiches and coffees to office workers, how long is your long run? It could be as short as a few days – enough time to lease a new van and a sandwich-making machine!
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