The long run is a period of time
A)during which at least one resource is fixed
B)during which all resources are variable
C)during which all resources are fixed
D)less than one year
E)greater than one year

Question

Quizplus · Accepted Answer

In the long run, all resources are variable, meaning that a firm has the ability to adjust all factors of production, including capital, labor, and technology. Therefore, choice B is the most accurate. Choice A is describing the short run, where at least one resource is fixed, while choice C is describing the concept of a stagnant economy where all resources are fixed. Choices D and E are incorrect because the length of time is not a defining characteristic of the long run, but rather the ability for a firm to adjust all resources.

The Long Run Is a Period of Time