What do you mean by short-term production period?

1.	What do you mean by short-term production period?
Answer» Short-term is a period in which some factors are fixed and some factors are variable. Fixed factors have fixed cost and variable factors have variable cost. Therefore, law of variable proportions applies here. In short-term, output can be increased or decreased by changing variable factors only, but fixed factors cannot be varied. The distinguishing characteristics of short-term is that certain factor inputs are fixed in character, while other factor inputs are variable in nature. The level of production can be changed. The scale of production cannot be changed.

Answer»

Short-term is a period in which some factors are fixed and some factors are variable. Fixed factors have fixed cost and variable factors have variable cost. Therefore, law of variable proportions applies here. In short-term, output can be increased or decreased by changing variable factors only, but fixed factors cannot be varied.

The distinguishing characteristics of short-term is that certain factor inputs are fixed in character, while other factor inputs are variable in nature. The level of production can be changed. The scale of production cannot be changed.

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