Suppose a firm decided to leave a high-cost / high-tax and poorly managed state like California to relocate to a low-cost / low-tax and well managed state like Texas. They are doing this because they will be able to save 30 percent on the cost of their labor (employees) and because the Texas state government is also giving them special tax incentives for new machinery and free land. This decision by the firm would be a good example of long-run cost management. (Hewlett Packard, Oracle, Tesla, SpaceX, Toyota North, Charles Schwab, Digital Realty Trust, Chevron, Jamba Juice, Occidental Petroleum, etc... are a few of thousands of large CA employers that have or are currently relocating to Texas)