Question

Discuss the difference between the short run and the long run from the perspective of a firm.

Short answer

Short-run: Firms' profits is positive, negative, or zero.

Long-run: The worth is high enough to finish in positive profit.

Step-by-step solution

Given Information

Short run: the amount of companiesin an exceedingly very very given industry is fixed.
Long run: the price is solely too high enough yet to point out in such a profit.

Explanation 

The Short Run: Firms will produce ifthe value a minimum of covers variable costs, since fixed costs have already been paid and, as such, don't enter the decision-making process. Firms' profits is positive, negative, or zero.

The Long Run: Firms will enter a market if the worth is high enough to finish in positive profit. Firms will exit a market if the worth is low enough to guide to negative profit. If all firms have the identical costs, firm profits are zero within the long run in an exceedingly competitive market.