A period of time long enough to vary all factors of production is known as the
A) long run
B) immediate run
C) short run

Question

Quizplus · Accepted Answer

The long run is a period of time long enough to vary all factors of production, including capital, labor, and technology. In the long run, a firm can adjust its inputs to maximize profits and improve efficiency. The short run, on the other hand, is a period of time during which fixed inputs cannot be changed, such as the size of a factory or the number of skilled workers. The immediate run is not a commonly used economic term.

A Period of Time Long Enough to Vary All Factors