In the long run, a firm's demand curve for a resource is:
A)more elastic than it is in the short run.
B)less elastic than it is in the short run.
C)perfectly elastic.
D)as elastic as it is in the short run.

Question

Quizplus · Accepted Answer

In the long run, firms have more time to adjust their production processes and inputs, making it easier to substitute between resources. This increased flexibility leads to a more elastic demand curve for a resource compared to the short run, where adjustments are more limited.

In the Long Run, a Firm's Demand Curve for a Resource