Time is very important when it comes to figuring out how much it costs to make things. It affects how easily we can change our resources. Let’s look at how this works:
Short-run costs: In this situation, at least one part (like machines) stays the same. This means we can't change production quickly. If more people want our product, it can cost more to keep up with that demand.
Long-run costs: Here, we can change everything. Over time, businesses can buy new technology and work better, which helps lower the cost for each item produced.
In the end, taking the time to plan can help businesses make smarter choices about how to produce their goods!
Time is very important when it comes to figuring out how much it costs to make things. It affects how easily we can change our resources. Let’s look at how this works:
Short-run costs: In this situation, at least one part (like machines) stays the same. This means we can't change production quickly. If more people want our product, it can cost more to keep up with that demand.
Long-run costs: Here, we can change everything. Over time, businesses can buy new technology and work better, which helps lower the cost for each item produced.
In the end, taking the time to plan can help businesses make smarter choices about how to produce their goods!