Introduction to Production and Costs in the Long Run

Module 7: Production and Costs

Introduction to Production and Costs in the Long Run

What you’ll learn to do: examine production choices in the long run

Three green twelve ounce bottles on a production line. The bottles are being filled with a liquid.

In the long run, because there are no fixed inputs, firms have more options about how to produce their products. As a result, we will see that long run costs are typically less than short run costs.