The long run refers to the period for which:
A)a fixed input exists.
B)all inputs are variable.
C)marginal costs are decreasing.
D)diminishing returns causes marginal cost to increase.

Question

Quizplus · Accepted Answer

The long run is the period during which all inputs are variable and can be adjusted to optimize production. In the long run, a firm can make changes to its production processes, such as expanding or scaling down production facilities, making alterations to the input quantities or types, and so on. Therefore, all inputs are variable in the long run, and this is the best choice.

The Long Run Refers to the Period for Which