Which of the following is correct in reference to the long run?
A)All inputs are variable.
B)Only one input is variable,and all others are fixed.
C)Only one input is fixed and all others are variable.
D)All inputs are fixed.

Question

Quizplus · Accepted Answer

In the long run, all inputs are variable. This means that a firm can adjust all of its inputs, such as labor and capital, to maximize profits based on changes in market conditions. In the short run, at least one input is fixed, such as a factory's physical capacity, which limits the firm's ability to adjust production levels.

Which of the Following Is Correct in Reference to the Long