Long-term means that a company has only variables. At this time, all the assets of the company, such as buildings and machines, can be increased.
Note that short-term and long-term are not divided by timeliness, but by whether there are fixed factors. What is fixed is short-term operation, and what is not fixed is short-term time.
Variable factors and. Fixed factor points again?
Variable factors refer to factors that a company can increase or decrease, such as the number of employees.
Fixed factors refer to factors that a company cannot increase. If a company has only one machine anyway, then this machine is a fixed factor. Fixed factors will only exist in the short term.
Before the difference, variable factors can be increased or decreased, while fixed factors are fixed and cannot be changed. Variable factors can exist in both short and long term, but fixed factors can only exist in the short term.
Whether it is a variable factor or a fixed factor depends on whether that thing can increase or decrease. This topic is usually mentioned.
I have always been used to learning ECON in English, but now I have some language barriers in speaking ECON in Chinese. Please forgive me if there is anything ambiguous in love.