The long run is defined as a time period during which full adjustment can be made to any change in the economic environment. Thus in the long run, all factors of production are variable. Long-run curves are sometimes called planning curves, and the long run is sometimes called the
A) foreseeable future.
B) minimum efficient time period.
C) non-adjustment period.
D) planning horizon.

Question

Quizplus · Accepted Answer

The long run is also known as the planning horizon, making choice D the correct answer. Choice A is incorrect as the long run refers to a period of time without specifying its foreseeability. Choice B is incorrect as it refers to a concept related to a firm's cost structure, not the time period for adjustments. Choice C is incorrect as it contradicts the definition of the long run, which explicitly states that all factors of production are variable.

The Long Run Is Defined as a Time Period During