The long run is defined as the time period in which
A) the firm can vary only one input.
B) the firm can make positive economic profits.
C) all factors of production can be altered.
D) the firm can alter its rate of production.

Question

Quizplus · Accepted Answer

The long run is a period of time in which all factors of production can be varied or adjusted. This means that firms can change the quantity of inputs used, introduce new technology or equipment, and make changes to their production process. Therefore, option C is the correct answer. Option A is incorrect because the short run is the period of time in which at least one input is fixed. Option B is incorrect because a firm can make positive economic profits in either the short run or the long run, and it is not a defining characteristic of the long run. Option D is incorrect because the ability to alter the rate of production is not unique to the long run, as it can also be done in the short run.

The Long Run Is Defined as the Time Period in Which