The long run refers to a time period
A)during which a firm is able to purchase all of its inputs, including its plant and equipment.
B)long enough for a firm to vary all of its inputs, to adopt new technology, and change the size of its physical plant.
C)long enough for a firm to pay all of its creditors in full.
D)long enough for a firm to change the use of its variable inputs.

Question

Quizplus · Accepted Answer

The long run is a time period during which a firm can vary all of its inputs, adopt new technology, and change the size of its physical plant. This allows the firm to make more significant adjustments to its production process and respond to changing market conditions. Choices A, C, and D do not fully capture the definition of the long run.

The Long Run Refers to a Time Period