The long run is a time period in which
A) some of the firm's resources are fixed.
B) all of the firm's resources are fixed.
C) all of the firm's resources are variable.
D) the firm cannot increase its output.
E) all costs become explicit costs.

Question

Quizplus · Accepted Answer

In the long run, all of the firm's resources are variable, meaning the firm can adjust its inputs as needed to maximize profits. This is in contrast to the short run, during which at least some resources are fixed and cannot be changed.

The Long Run Is a Time Period in Which