The long run is characterized by
A)the relevance of the law of diminishing returns.
B)at least one fixed input.
C)insufficient time for firms to enter or leave the industry.
D)the ability of the firm to change its plant size.

Question

Quizplus · Accepted Answer

In the long run, all inputs are variable, allowing firms to change their plant size and adjust their production capacity to meet demand. This contrasts with the short run, where at least one input is fixed.

The Long Run Is Characterized by