Periods of Production:

Production is a process and goes on over a period of time. There are two main periods of production in economics and they are short run and long run.

(a) Short-Run Period of Production

This is a period of production during which some factors of production are fixed and some too are variable. The fixed inputs cannot be varied when demand conditions require a change in output. This period varies from firm to firm, depending on the type of production a firm undertakes and the inputs it uses.

(b) Long-Run Period of Production

This is a period of production within which all inputs are variable. This implies that if demand conditions warrant a change in production all the inputs can be varied to achieve this.