Is short term and short run the same

[rookie1010]

Hello,

with reference to economics, is short term and short run the same?

 

[Cattlegod]

what is the context?

short term is generally < 1 year.
short run - never heard this in economics or anything, but i would think that it has to do with a short production run of a product.

 

[rookie1010]

hello cattlegod,

the context is economics, i came across the term on wikipaedia
http://en.wikipedia.org/wiki/Short-run


the entry goes
"In economics, the concept of the short-run refers to the decision-making time frame of a firm in which at least one factor of production is fixed. Costs which are fixed in the short-run have no impact on a firms decisions. For example a firm can raise output by increasing the amount of labour through overtime.

A generic firm can make three changes in the short-run:

* Increase production
* Decrease production
* Shut down

In the short-run, a profit maximizing firm will:

* Increase production if marginal cost is less than price;
* Decrease production if marginal cost is greater than price;
* Continue producing if average variable cost is less than price, even if average total cost is greater than price;
* Shut down if average variable cost is greater than price. Thus, the average variable cost is the largest loss a firm can incur in the short-run.
"

 

[Aluvus]

"Short run" is used in contrast to "long run". "Long run" implies the ability to alter many/all variables, where "short run" implies being constrained in some of these variables.

It is occasionally used as a synonym for "short term" (because it is pretty close in meaning, and sounds very similar), but this is not strictly correct.

 

[JJChicken]

Originally posted by: Aluvus
"Short run" is used in contrast to "long run". "Long run" implies the ability to alter many/all variables, where "short run" implies being constrained in some of these variables.

It is occasionally used as a synonym for "short term" (because it is pretty close in meaning, and sounds very similar), but this is not strictly correct.

Couldn't have said it better myself.

 

[rookie1010]

thanks for the explanations guys.