The long run refers to a period of time over which:
A) the firm can change its level of output.
B) only one input is fixed.
C) production technology increases.
D) all inputs are variable.

Question

Quizplus · Accepted Answer

In the long run, all inputs are variable, meaning a firm can adjust its level of output by changing the amount of all inputs used in production. This distinguishes it from the short run, where at least one input is fixed and output cannot be easily adjusted. While production technology may improve over time in the long run, this is not what defines the time period.

The Long Run Refers to a Period of Time Over