The long-run production period:
A) is a time when all inputs are variable.
B) varies in length according to how capital goods are specialized.
C) is likely longer for a steel manufacturer than for a retailer who sells watches off a cart at the local mall.
D) is characterized by all of the above.

Question

Quizplus · Accepted Answer

The long-run production period is a time when all inputs are variable, meaning a firm can adjust its inputs of labor and capital to produce goods at any level. The length of the long-run production period varies based on the specialization of capital goods, which can affect the time it takes to adjust to changes in production. Additionally, the length of the long-run production period can vary among different types of firms, as some may require more time to adjust their production processes than others. Therefore, all of the choices are correct statements about the long-run production period.

The Long-Run Production Period