Distinguish between the short run and the long run. What will differentiate the short run and the long run? The short run is more immediate; Its a period of time that it too short to factor in all variables (Amacher & Pate, 2019). Whereas the long run is a more extended length of time accounting for multiple factors including an increased number of locations, equipment and labor fluctuations (Amacher & Pate, 2019). The most noticeable difference between the short run and the long run is the difference between what Sarahs bakery has right now (short run) versus what Sarahs bakery will potential have in the future (long run).
Describe fixed inputs and variable inputs. Which inputs are fixed and which are variable in Sarahs bakery? Fixed inputs do not change in the short run;...