In the long run:
A) the firm considers all factors as fixed.
B) the firm considers all factors as variable.
C) production choices are more limited than in the short run.
D) production is always greater than zero.

Question

Quizplus · Accepted Answer

In the long run, all factors of production are considered variable and can be adjusted by the firm. This provides the firm with more flexibility to make production choices, including changing the size of the plant or altering the production processes. Therefore, option B is the correct choice. Option A is incorrect since the firm considers all factors as variable in the long run, not fixed. Option C is incorrect as the firm has more production choices in the long run due to greater flexibility. Option D is incorrect as there is no guarantee that production will be greater than zero in the long run.

In the Long Run