<p>The actual length of time does not matter. Simply, in the short-run capital is fixed and labor is variable. In the long-run both capital and labor are variable (which gives firms enough time to, for example, build a new factory to match an increase in demand). It would be really fortunate if there was a general time frame, but that would vary from industry to industry. The long-run for, let say, Ford is a pretty long-time because they are very capital intensive. However the long-run for, lets say, a Clown Rental Service, is very short because it is entirely labor dependent. </p>

<p>Hopefully this answer helps.</p>

CC BY-SA 3.0
2016-10-16T04:49:48.620Z
Thanks a lot for the explanation! I also just read about a definition saying that normally in a short-term we assume that at least one input is fixed, from the Advanced Microeconomic Theory by Jehle and Reny.
Eric Chen
CC BY-SA 3.0
2016-10-16T05:12:32.910Z
Ya, that would be tue slightly more general definition. But the sr case where labor is fixed and capital varies is a rare, odd case
bdempe
CC BY-SA 3.0
2016-10-15T19:46:14.097Z
2016-10-15T19:46:14.097Z
bdempe
<p>Like normally how long can be said as long run? And does specific time length of these words matters?</p>

<definition>
Is there a specific definition of short run and long run?
Eric Chen
# Is there a specific definition of short run and long run?

(Asked by: username_0 on 2016-10-15)

Like normally how long can be said as long run? And does specific time length of these words matters?

**Tags:** definition

---

## 1 answers

### Answer by username_1 on 2016-10-15. Score: 2

The actual length of time does not matter. Simply, in the short-run capital is fixed and labor is variable. In the long-run both capital and labor are variable (which gives firms enough time to, for example, build a new factory to match an increase in demand). It would be really fortunate if there was a general time frame, but that would vary from industry to industry. The long-run for, let say, Ford is a pretty long-time because they are very capital intensive. However the long-run for, lets say, a Clown Rental Service, is very short because it is entirely labor dependent.

Hopefully this answer helps.

> **Comments:**
> **username_0**: Thanks a lot for the explanation! I also just read about a definition saying that normally in a short-term we assume that at least one input is fixed, from the Advanced Microeconomic Theory by Jehle and Reny.  
> **username_1**: Ya, that would be tue slightly more general definition. But the sr case where labor is fixed and capital varies is a rare, odd case  

---

