Saturday, 20 October 2012

Short-run and long-run perspectives in business studies

Some of my Strategic Management Accounting students have difficulties to comprehend the differences between short-run perspective and long-run perspective in business analysis, e.g. in pricing decision-making based on short-run and long-run perspectives. I do not offer to explain the differences between the two perspectives in a brief note but I propose an overall framework for students to do further study to gain a deeper understanding of these two perspectives. This is done in the form of the following diagram:



Reference
Short run vs long run in Economics: http://en.wikipedia.org/wiki/Long_run_and_short_run

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