Which of the following is TRUE about the long run?
A) All resources are variable.
B) All resources are fixed.
C) At least one resource is fixed.
D) none of the above

Question

Quizplus · Accepted Answer

In the long run, all resources are theoretically variable. This means that the firm can adjust any input or resource to its desired level, such as labor, capital, technology, and raw materials. The long-run is characterized by the absence of fixed inputs, allowing companies to optimize their production levels and minimize their costs. Thus, option A is the correct answer, while options B and C are incorrect because they assume either all resources are fixed or at least one resource cannot be modified. Option D is also incorrect as it contradicts the characteristics of the long-run.

Which of the Following Is TRUE About the Long Run