In economics,the long run is considered to be

Question

Quizplus · Accepted Answer

The long run, in economics, refers to a time period when all costs are variable. This means that a firm can adjust its production levels and change the quantities of all inputs it uses in production. In the short run, at least one input is fixed, and therefore, firms cannot adjust production levels as easily. The long-run is not defined by a specific amount of time, but rather by a firm's ability to adjust all factors of production. Therefore, option A is the correct choice. Option B is incorrect because explicit costs refer to actual expenses, including wages, rent, and materials, and these costs can be either variable or fixed. Option C is incorrect because one year is not a precise definition of the long run.

In Economics,the Long Run Is Considered to Be