Question

Please answer this using the concept of Intermediate Microeconomics Theory:

In the short run, total costs of production are usually higher than in the long run. Why?

Answer 1

It can be mentioned that the total cost of production are usually higher in short run and business because of the fact that in short run there are fixed cost and there is no development of Technology but in the long run what happens if that all the fixed cost get eliminated and people have figured out the optimal ways of production and the optimum cost of production is also improved and that is the reason why you observe that usually cost is low in the long run than the short run