The long run refers to a period of time over which
A) The firm can change its level of output
B) Only one input is fixed
C) Production technology increases
D) All inputs are variable

Question

Quizplus · Accepted Answer

In the long run, all inputs are variable, meaning that the firm can adjust its level of output, change its production technology, and vary all of its inputs as needed to achieve long-term goals. Option A is incorrect because changing the level of output occurs in the short run. Option B is incorrect because in the short run, at least one input is fixed. Option C may or may not be true, but it is not the defining characteristic of the long run.

The Long Run Refers to a Period of Time Over