What is the short-run production function? Explain how is short-run pr

1.	What is the short-run production function? Explain how is short-run production function different from the long-run production function.
Answer» Short-run is a period of time when production can be increased only by increasing the application of variable factor(s). Fixed factor, by definition, remains constant. When one factor is a fixed factor and the other is a variable factor, production function may be specified as under: Qx = f(L, K) Here, Qx = Output of Good – X L = Labour, a variable factor K = Capital, a fixed factor Difference: 1. Short run production function is ‘variable proportions type production function’ while the long period production function is ‘constant proportions type production function’. 2. Short run production function exhibits constant scale of output, while long run production function exhibits change in the scale of output.

What is the short-run production function? Explain how is short-run production function different from the long-run production function.

Answer»

Short-run is a period of time when production can be increased only by increasing the application of variable factor(s). Fixed factor, by definition, remains constant. When one factor is a fixed factor and the other is a variable factor, production function may be specified as under:

Qx = f(L, K)

Here, Qx = Output of Good – X

L = Labour, a variable factor

K = Capital, a fixed factor

Difference:

1. Short run production function is ‘variable proportions type production function’ while the long period production function is ‘constant proportions type production function’.

2. Short run production function exhibits constant scale of output, while long run production function exhibits change in the scale of output.

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