Q189
The long run is a
A.
Period of three years or longer
B.
Period long enough to allow firms to change plant size and capacity
AnswerC.
Period long enough to allow firm to make economic decisions
D.
A period which affects larger than smaller firms
Answer: Option B
Solution
Answer: Option B
Solution:
The period is long enough to allow firms to change plant size and capacity. The long run is a period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all costs.