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

Question

Quizplus · Accepted Answer

In the long run, all inputs are variable, meaning that a firm can adjust all of its inputs to produce a desired level of output. This is in contrast to the short run, where at least one input is fixed and cannot be adjusted. Marginal costs and diminishing returns may still be relevant in the long run, but they do not define the time period itself.

The Long Run Refers to the Time Period When