Short-Period:

Short period is one in which full adjustment is not possible, if one factor is fixed then we can

say that it is short period, during which consumers and producers have not had enough time to

make all the adjustments to the new situation.

Long-Period:

Long period is one during which consumers and producers have had enough time to make

all the adjustments to a new situation, all factors are variables

Production in Short–Period

Productions function in short-period:

To change Q (∆Q), we have to change L (∆L)

Or

∆L => ∆Q with fixed amount of capital.

Form of Production:

There are three forms of production;

i- Total Product of Labor (TPL).

ii- Average Product of Labor (APL).

iii- Marginal Product of Labor (MPL).

Total Product of Labor (TPL):

The sum of all units produced by all units of labor is called total product of labor.

Average Product of Labor (APL):

It is the per labor output

Marginal Product of Labor (MPL):

It is the change of total product of labor due to additional unit of labor, if we change

labor by a constant amount, output changes. But change in output is not fixed. Output changes

with variable amount