The long run refers to:
A) A time period longer than one year.
B) A time period less than one year.
C) A period of time long enough for all inputs to be varied.
D) The time period required for a firm to cycle its inventory.

Question

Quizplus · Accepted Answer

The long run refers to a period of time long enough for a firm to adjust all of its inputs or factors of production, including labor, capital, and technology. In other words, it is the period of time required for a firm to vary all of its inputs and adjust its production processes accordingly. It is not specifically defined as longer than one year or less than one year, and it is not related to inventory cycles.

The Long Run Refers To