In the long run,
A)a firm can shut down,but it cannot exit the industry.
B)there are no fixed factors of production.
C)a firm can vary all inputs,but it cannot change the mix of inputs it uses.
D)None of the choices are correct.

Question

Quizplus · Accepted Answer

In the long run, all factors of production are variable, meaning there are no fixed costs. Firms can adjust all inputs, including capital and labor, to their desired levels. This flexibility allows for adjustments in production processes and the ability to respond to changes in the market or technology.

In the Long Run