The long run is a period of time:

Question

Quizplus · Accepted Answer

The long run is a period of time that is long enough to permit changes in all the firm's inputs, both fixed and variable. This means that during the long run, a firm can change not only its variable inputs (e.g. labor and raw materials), but also its fixed inputs (e.g. plant and equipment). Option A is incorrect because the long run is actually a period of time that is long enough to allow for changes in the size of a firm's plant. Option C is incorrect because it is too narrow in scope, as production can occur beyond one year in the short run as well. Option D is also incorrect as it is too specific, and the length of the long run can vary depending on the industry and nature of the firm.

The Long Run Is a Period of Time