In economics, what is the difference between the short run and ...

[mckennatimberlake]

In economics, what is the difference between the short run and the long run?
 
  What will be an ideal response?

Question 2

There are many cattle ranchers in the world, and there are also many McDonald's restaurants in the world. Why, then, does a McDonald's restaurant face a downward-sloping demand curve while a cattle rancher faces a horizontal demand curve?
 
  What will be an ideal response?

[sarahccccc]

Answer to Question 1

In economics, the short run refers to the period of time during which at least one of a firm's inputs is fixed. The long run refers to the period of time in which a firm can vary all its inputs, adopt new technology, and increase or decrease the size of its physical plant.

Answer to Question 2

All cattle ranchers are selling identical goods, but fast food restaurants do not sell identical goods. If a cattle rancher raises his price above the market price, he will lose all of his buyers. A McDonald's restaurant can raise its price without losing all of its buyers because it is selling a product that is not identical to the products sold by other restaurants.