Microeconomics › Section G · Production, costs, and industry structure › Topic G.4
Production in the long run
The short run's bottleneck was the fixed input. In the long run there is no bottleneck: every input can grow, shrink or vanish, the firm can switch technologies entirely - and a different law, about scaling everything at once, takes over from diminishing returns.
In this topic
- The long run: everything is a choice
- Removing the bottleneck
- Returns to scale: a different law
- Where each pattern comes from
- Worked example: one oven, then three
- Worked example: classifying three firms' scaling
- Technology, in the economist's sense
- Returns to scale and tomorrow's cost curve
- Common mistakes to avoid
- Key takeaways
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