The long run refers to:
A)a time period long enough for the prices of both output and inputs to adjust to changes in the economy.
B)any time period of more than a year.
C)a time period in which input prices can change but output prices have not had time to adjust.
D)a time period in which output prices can change but input prices have not had time to adjust.
E)a time period in which a firm's output doubles.

Question

Quizplus · Accepted Answer

The long run is a time period long enough for the prices of both output and inputs to adjust to changes in the economy. This means that all factors of production, including labor, capital, and technology, can be adjusted in the long run. In contrast, the short run is a time period in which at least one factor of production is fixed and cannot be changed.

The Long Run Refers To