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 productionDecrease production Shut down In the short-run, a profit maximizing firm will:Increase production if marginal cost… (More on Short-run)