Angela, Bonnie, and Carl are visiting the local paint store. Angela, owner of Angela's Artful Painting Co., is posting a Help Wanted sign because she is looking for more painters to join her crew. Bonnie, who is a sole proprietor, is placing an order for 12 gallons of green paint. Carl is a painter who is looking for a job and is reading the bulletin board in the paint shop. Who is operating in the long run?

Question

Quizplus · Accepted Answer

In economic terms, operating in the long run refers to a period where all inputs can be adjusted by the firm, and there are no fixed costs. The scenario provided does not give information about adjusting all inputs or about fixed and variable costs for Angela, Bonnie, or Carl. It simply describes their current activities, which are more indicative of short-term operations.

Angela, Bonnie, and Carl Are Visiting the Local Paint Store