If a firm can vary all of its factors of production, it is operating in
A) the long run.
B) the immediate run.
C) equilibrium.
D) the short run.

Question

Quizplus · Accepted Answer

In the long run, all factors of production are variable and can be adjusted to reach the most efficient levels. In the short run, at least one factor of production is fixed and cannot be adjusted. The immediate run is not a commonly used economic term, and equilibrium refers to a state of balance between supply and demand, rather than the ability to vary factors of production.

If a Firm Can Vary All of Its Factors of Production