In the short run, the companies may be faced with a higher cost of production. However, the companies cannot vary the costs, especially fixed costs. If the short-run period is sufficient, the firm may be able to vary the variable costs because they change with the amount of output.
The short-run costs will go up or down depending on the number of variable costs incurred in producing chocolate bars. If the short-run costs are managed well, the company may succeed in attaining the preferred long-run costs and goals.
In the long run, the companies will have sufficient time to change production levels over time in response to projected economic losses. All factors of production are variable in the long run, including labor, land, capital goods, and entrepreneurship. The costs will change until they reach the long-run cost of producing the chocolate bars.
In the long run, there is adequate time to plan and implement production changes. The companies will have adequate time to examine the current and anticipated state of the market in order to make production pronouncements. The companies can be able to sustain their expenses through the amalgamation of productivity.
As a result, the companies will be able to produce the desired quantity of the commodity at the lowest possible cost. The companies may choose to change the quantity of production, reduce or expand the current companies, or change or leave the market.