When we talk about short-run costs and long-run costs in making products, it’s really about being flexible and how much time we have.

1. Short-Run Costs:

• These costs are hard to change quickly.
• Think of a bakery with a fixed number of ovens. If more people want their pastries, the bakery can't just buy more ovens or hire workers right away.
• Costs in the short run include things like staff salaries and the ingredients they need.

2. Long-Run Costs:

• In this case, businesses can change everything they use.
• It’s like thinking ahead—deciding if the bakery should expand or move to a bigger place.
• All parts of making products, like machines and workers, can be improved.

So, short-run costs are about what's happening now, while long-run costs are about planning for the future!