When considering the phases of adjustment and response to operating exposure in the LONG RUN, price changes tend to be ________ and volume changes tend to be ________.
A) fixed/contracted; contracted.
B) fixed/contracted; completely flexible.
C) completely flexible; completely flexible.
D) completely flexible; contracted.

Question

Quizplus · Accepted Answer

In the long run, both price and volume changes tend to be completely flexible as firms adjust their operations, pricing strategies, and market focus to adapt to changes in exchange rates and competitive conditions.

When Considering the Phases of Adjustment and Response to Operating