I am trying to understand long run vs short run in terms of Microsoft. The question is can Microsoft earn short run economic profits, and can it sustain long run economic profits. Why or Why Not?
Short run period is a period of imperfect adjustment to a situation perceived as temporary.
The short run is a period of time when there is at least one fixed factor of production. This is usually fixed capital such as machinery and the amount of factory space available.
Thus in short run, output increases when more units of variable factors (labour and raw materials) are added to fixed factors. Thus it can only change the ...
This job emphasizes long run vs short run in terms of Microsoft.