In the long run, a firm's decision about hiring labor is _____ compared to the short run.
A) less responsive
B) equally responsive
C) more responsive
D) unresponsive

Question

Quizplus · Accepted Answer

In the long run, a firm's decision about hiring labor is more responsive because it has more flexibility to adjust all inputs, including labor, to changes in market conditions. Unlike the short run, where some factors are fixed, the long run allows for adjustments to the entire production process.

In the Long Run, a Firm's Decision About Hiring Labor