Question

Distinguish Between

Short period and Long period

Answer 1

Sr. No.	Short Period	Long Period
1.	Short period refers to a period of less than 1 year.	Long period refers to a period of upto five years
2.	During a short period, firms can only make adjustments in input like labour to increase the supply of goods & services marginally.	During a long period, firms are able to make adjustments in inputs like land, labour & capital to increase the supply of goods and services substantially
3.	The factors of production and costs are more likely to be fixed.	All factors of production and costs are variable.