1. the short run and long run exhibit differences due to variable inputs and the flexibility of factors of production. For instance, in the short run, a bakery can increase production by hiring more workers to meet immediate demand, but in the long run, it can expand its capacity by building a larger facility or investing in more efficient machinery to accommodate sustained growth. 2. Thinking long-term helps you make plans ahead of time and adjust to changes, so you're not just reacting to what's happening right now