Short-run production: Short-run production is a period of time where at least one factor of production is fixed, meaning it cannot be easily changed. It limits the firm's ability to fully optimize its operations.
Economies of scale: Economies of scale occur when increasing the scale or size of production leads to lower average costs per unit produced. This is often achieved by taking advantage of bulk purchasing or more efficient use of resources.
Diseconomies of scale: On the other hand, diseconomies of scale refer to an increase in average costs per unit produced as the firm grows too large. This may happen due to coordination challenges or inefficiencies in managing larger operations.