Which of the following is TRUE about the long run?
A) All resources are variable.
B) All resources are fixed.
C) At least one resource is fixed.
D) None of the above.

Question

Quizplus · Accepted Answer

In the long run, all resources are variable as firms have the flexibility to adjust their inputs such as labor or capital to maximize profits. They can expand or contract their production capacity, unlike the short run where at least one resource is fixed, such as the size of the factory. Therefore, option A is the correct answer.

Which of the Following Is TRUE About the Long Run