Question Details

In the long run ______________________

Options

A

At least one of the factor varied

B

All factors of production can be varied

C

Factor remains fixed.

D

Only one factor can vary.

Show Answer

Correct Answer :

Option B

All factors of production can be varied

Solution :

The correct option is: All factors of production can be varied

In economics, the distinction between the short run and the long run is defined by the flexibility of the inputs (factors of production) used in a production process.

During the short run, at least one factor of production—typically capital (like machinery, buildings, or land)—is fixed and cannot be changed quickly. Producers can only adjust variable inputs like labor or raw materials to alter output levels.

However, in the long run, the time horizon is long enough for a firm to adjust and vary all of its inputs. There are no fixed costs or fixed factors of production in the long run; firms can expand or contract their physical factories, acquire new machinery, or change any other resource they employ. Therefore, all factors of production become variable.

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