With regard to economic decision making for firms,the long run is a period in which
A)all factors of production are variable but technology is fixed.
B)technology is variable.
C)only some of the factors of production are variable.
D)technology may be variable,but some factors of production are fixed.
E)only capital is variable.

Question

Quizplus · Accepted Answer

In the long run, all factors of production (including labor, capital, and land) are variable, meaning they can be adjusted by the firm to respond to changing market conditions. However, technology is assumed to be fixed in the long run, meaning that firms cannot improve or change their production processes without incurring additional costs. Therefore, economic decision making in the long run involves adjusting the mix of inputs (factors of production) to maximize profits given the fixed technology.

With Regard to Economic Decision Making for Firms,the Long Run