Differentiates between short run and long run costs

Question

Differentiates between short run and long run costs?

Answer 1

Short run cost is those costs that may change with output whereas fixed factors stay constant. Output may change by changing the variable factors simply. But conversely long run is a period that is adequate to adjust all input factors. Therefore, long run costs are those costs that vary with output while all input factors (variable and fixed) are variable.