Long Run

Dictionary Says

Definition of 'Long Run'

A period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all costs, whereas in the short run firms are only able to influence prices through adjustments made to production levels. Additionally, whereas firms may be a monopoly in the short-term they may expect competition in the long-term.

In economics, long-run models may shift away from short-turn equilibriums, in which supply and demand react to price levels with more flexibility.

Investopedia Says

Investopedia explains 'Long Run'

Firms examining the long run understand that they cannot alter levels of production in order to reach an equilibrium between supply and demand. In the long run, they can either expand or reduce production capacity or enter or exit an industry based on expected profits. In the short run, barriers to entry prevent competitors from quickly entering a market. In the long run, however, competitors may enter or exit an industry depending on the levels of profit previously seen by companies operating in that industry.

Search results for

'Long Run'

  • CFA Level 1 Study Guide - Macroeconomics - Short and Long-run ...

    http://www.investopedia.com/exam-guide/cfa-level-1/macroeconomics/short-long-macroeconomic-equilibrium.asp
    Explains how various changes in aggregate supply and demand affect the
    macroeconomic equilibrium in both the short and long run. ...
  • Auction Rate Securities: Bidding On The Long Run

    http://www.investopedia.com/articles/bonds/08/auction-rate-securities.asp
    Auction Rate Securities: Bidding On The Long Run. October 22 2008 | Filed
    Under » Bonds. Auction rate securities (ARSs) are usually ...
  • CFA Level 1 Study Guide - Microeconomics - Effects on Equilibrium ...

    http://www.investopedia.com/exam-guide/cfa-level-1/microeconomics/equilibrium-short-long-run.asp
    ... Competitive Markets; 3.16 Effects on Equilibrium in the Short and Long Run;
    3.17 Characteristics of Monopolies; 3.18 Inefficiencies ...
  • Delay In Retirement Savings Costs More In The Long Run

    http://www.investopedia.com/articles/retirement/04/122104.asp
    Delay In Retirement Savings Costs More In The Long Run. September 15 2009 |
    Filed Under » 401K, Retirement, Savings. While it is ...
  • 4 Reasons Not To Refinance Your Home - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0711/4-Reasons-Not-To-Refinance-Your-Home.aspx
    ... 2. The long-term costs are too high. Refinancing to lower your monthly payment
    is great - unless it hurts you significantly in the long run. ...
  • Random Reinforcement: Why Most Traders Fail

    http://www.investopedia.com/articles/trading/09/random-reinforcement-why-most-traders-fail.asp
    ... to a gambling addict as they keep playing because they win just enough to keep them
    there, but of course they are losing their money over the long run. ...
  • Equity Premiums: Looking Back And Looking Ahead

    http://www.investopedia.com/articles/stocks/06/equitypremium.asp
    ... March 03 2006 | Filed Under » Bonds, Stocks. Stocks are commonly touted as
    being safe (real returns greater than 0) over the long run. ...
  • Should You Invest Your Entire Portfolio In Stocks?

    http://www.investopedia.com/articles/stocks/07/100_equities.asp
    It is true that stocks outperform bonds and cash in the long run,
    but that statistic doesn't tell the whole story. ...
  • Stocks Are No.1

    http://www.investopedia.com/articles/stocks/08/stocks-historical-returns-number-one.asp
    ... In his book, "Stocks for the Long Run" (1994), Jeremy Siegel shows that, in
    blocks of 20 years, stocks outperform bonds 90% of the time. ...
  • Evaluating A Company's Management

    http://www.investopedia.com/articles/02/062602.asp
    ... price. There is some truth to this over the long run, but strong performance
    in the short run doesn't guarantee good management. The ...

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