The long run is a planning period:
A) during which the firm can vary all inputs including its plant size.
B) less than six months.
C) less than one year.
D) less than five years.

Question

Quizplus · Accepted Answer

The long run is a planning period during which the firm can vary all inputs including its plant size. This means that the firm has the flexibility to make adjustments to its production processes, including expanding or reducing the size of its facilities, in order to optimize its operations. The other choices – B, C, and D – all define shorter planning periods with more limited options for adjustment.

The Long Run Is a Planning Period