Short Run Cost

Short run costs include the ideas of total cost, average cost, and marginal costs. While it is important as a business to understand these costs I believe that they must be utilized as a tool to allow for long term success of the business and not as a quick decision tool. Small businesses are often started with limited financial backing and therefore are susceptible to small changes within their business plan. If sales are not at a projected level for a quarter then the business may lay off employees when in fact the best course of action would be to maintain these employees and focus on building sales.
This does bring about an entirely separate issue of businesses starting without a well-thought business plan but this happens so often that I am willing to ignore that and look at how they can succeed despite that failure. Short run costs can be affected by a variety of factors such as increased demand, unexpected weather, labor disputes, and so on. It is the ability of the business to weather the unexpected events of the present and focus on the growth in the long run.
I believe that short run costs are a very important function of business. They need to be examined carefully to determine how certain changes in the business effect the long term success of the business. Without careful examination of these costs a business owner would not be able to continue evolving the business in order to grow.