The planning horizon is the
A) long run.
B) short run.
C) point where production begins.
D) point where diminishing marginal product starts.

Question

Quizplus · Accepted Answer

The planning horizon refers to the period of time over which a firm plans its production activities and strategies, and it typically covers the long run. The long run is the period of time in which all factors of production are variable, allowing a firm to adjust its inputs and production processes in response to changes in market conditions or technology. This is in contrast to the short run, where some factors of production are fixed and cannot be changed. The planning horizon is therefore best represented by choice A, the long run.

The Planning Horizon Is the