The time frame in which all factors of production can vary is
A) the short run.
B) the intermediate run.
C) the long run.
D) indeterminate.

Question

Quizplus · Accepted Answer

In the long run, all factors of production including labor, capital, and technology can vary. This allows firms to make adjustments to their production processes and achieve their desired level of output. In the short run, some factors of production, such as capital and technology, may be fixed, which limits a firm's ability to alter its level of production. The intermediate run is a less commonly used concept and typically refers to a time frame between the short run and the long run. Therefore, C) the long run is the best choice as it correctly identifies the time frame in which all factors of production can vary.

The Time Frame in Which All Factors of Production Can